Things to Know before Your Loan is Reviewed by an Underwriter

After you have completed your loan applicaiton and provided your documents, all loans must be reviewed by an underwriter. No matter if your loan is a Conventional, FHA, VA or USDA loan, it must be reviewed by an underwriter to verify all documents, information and data. 

Before your loan is submitted to an underwriter, we prepare your file to be reviewed so it is prepared for the underwriter to do their part and move to closing. There is a lot of preparation done by many people to get a loan to this point. The borrower, the loan officer, assistants and processors prepare a file to get a loan ready to be reviewed by an underwriter and also jr. underwriters. Once a file has been approved, usually a "Conditional Approval" is issued on every file. There are several things that the borrower (you) can do to help us move your loan both to underwriting and to get a clear to close as quickly and efficiently as possible.

Underwriting

The underwriter acts as a “gate keeper," protecting the interest of the lender and safeguarding the limited funds they have to lend. Underwriters follow strict black-and-white guidelines established by industry investors. These guidelines are harsher than they were during the mortgage lending boom of 2002 – 2008. The days of what many industry professionals describe as “common sense underwriting" are long gone. 

Once an underwriter reviews your loan application (whether for a purchase or a refinance) they will issue one of three determinations: a Conditional Approval, a Suspension, or a Denial.

When a Conditional Approval is issued, a member of our Pipeline Team will call you immediately to review the approval and discuss any conditions needed before we can schedule your loan to close.
Rest assured that an underwriter issuing a Suspension or Denial on your loan does not end your relationship with Miracles Happen. This is where Miracles Happen steps in to defend you, as your advocate. We have an entire team at Miracles Happen dedicated to overcoming underwriting objections, re-working your application, and unearthing underwriting errors.
Still, we will be candid with you at anytime during the process if we do not believe your application has an opportunity to close. Just know that we are devoted to exhausting every last ounce of effort to match your family’s financial situation to a qualified loan program.

While we will be shouldering most of the work, we have come up with a small list of things that you can do to help ensure that your loan closes as quickly as possible. Please do your best to adhere to Miracles Happen's list of Do's and Don'ts while your loan is being underwritten.
Here are a couple of other important things to know:

• Turn-times vary
  Depending on the type of loan for which you are applying and the saturation of the current market, the underwriting process for your application may take up to 5-14 days. A large portion of Miracles Happen's service to you is to gently, but proactively, nudge the underwriter to review your file as quickly as possible.

• Disclosure Mailings:
  You will most likely continue to receive loan disclosures throughout the process, either electronically or through the mail from your designated lender. Although there may be cover letters with these lender disclosures that state you need to sign and return them, there is no need for you to take any action. They are simply being sent to you by the lender so that they remain in compliance with State and Federal disclosure laws. Feel free to discard these documents.

We appreciate your cooperation and patience while your loan is being underwritten. Please do not hesitate to call with any questions or concerns that you might have. We look forward discussing your upcoming Conditional Approval with you very soon.