Once your loan has been officially pre approved, all of the client paperwork gets submitted to the underwriter at the bank to review before getting final approval. The underwriter makes sure all necessary paperwork and forms are in order to prevent any issues or delay in the loan funding. If there is any missing paperwork or problems with the documentation provided, the items will be added as “conditions” to the loan.
Underwriting can occur the same day, or take up to 30 days. This depends a lot on the loan program, the bank, and how many conditions on the loan need to be addressed. The underwriter usually takes 24-48 hours to review conditions.
Unfortunately, current lending conditions require borrowers to be more meticulous in getting approval for the loan. From Central Coast Lending Owner/Broker Jason Grote:
“Underwriting has become an auditing role where underwriters are forced to over verify each detail leave no stone unturned.I suggest that all borrowers be prepared to document all income in triplicate. For example, it’s not enough that we see your social security deposit into your bank account, and on your tax returns, we still need to see the award letter, and the 1099’s. “