The Underwriting Process
Underwriting in Layman’s Terms: The Underwriter is like the Judge in a courtroom. They will look over the file and make a decision. They have final say to give us our Clear to Close (CTC). So you can close on your home!
What is In-House Underwriting and why does it matter?
In-house underwriting essentially means the lender has their own Underwriters employed. Not all lenders offer this. (We do) This benefits you as the borrower in a few ways. First, we have much faster turn around times than most other lenders. Second, is if there is an issue, I can reach out to our Underwriters directly and get an issue solved fast. Or if need be, we can speak with the head of Underwriting and get an exception if it is warranted. Lenders who do NOT have their own underwriters lose this advantage.
Another major advantage this gives is the possibility to take future issues to an Underwriter before you put a contract down on a house. Solve it and have everything ready to go. This way when you do go under contract, its a nice smooth process with no surprises.
Benefits of in-house underwriting
The biggest advantage is that borrowers have a more personal connection to the process. You are a person with a story, a situation. If the underwriter needs more information to explain any red flags like gaps in employment or credit issues, an “in-house” underwriter communicates with us to help explain your situation or help you collect more information.
It can improve the chances of being approved without delay. Delays can lead to costly fees for missing deadlines and could even force you to miss out on your dream home.
Other Lenders/Brokers
By contrast, many large mortgage lenders out-source the underwriting to third-party companies or individuals. This can save the lender a few dollars over-time but can also slow the process, introduce unnecessary costs for the borrower, and possibly create confusion with so many different hands on your loan file. Not to mention, you lose that direct connection with the Underwriter if issues arise.
Our underwriting process
Geneva Financial maintains the entire mortgage process under one roof, from application through closing. Together with our experience as loan officers & knowing what types of items our In-House Underwriters look for, we can solve issues before they even come up, and make the process as easy as possible for you, the buyer!
The underwriter will make an informed decision.
The underwriter has the option to either approve, deny or pend your mortgage loan application.
- Approved: You may get a “clear to close” right away. If so, it means there’s nothing more you need to provide. We can schedule your closing. However, if your approval comes with conditions (most common), you’ll need to provide something more, such as a signature, tax forms or prior pay stubs. This is nothing to worry about if you’re prompt in responding to any requests (also completely normal).
- Denied: If an underwriter denies your mortgage application, you’ll need to understand why before deciding on next steps. There are many reasons for the denial of an application. However when you work with us, this is EXTREMELY rare. Our initial conversation will go over whats needed to qualify, and if there is any reason that would cause a denial, then we work on fixing it before you put down a contract.
- Decision pending: If you don’t provide enough information for the underwriter to do a thorough evaluation, they may suspend your application. For example, if they can’t verify your employment or income. It doesn’t mean you can’t get the loan, but you’ll need to provide further documentation for them to decide.
Honesty can help any loan move faster and easier. So please let me know if there is anything that might come up. Holding back info only leads to wasted $ on appraisals & inspections. There is no issue to crazy, just let me know and we can work through it together to get you into home ownership!
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