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Our installment previous to this one was about satisfying conditions. It's during the underwriting process that
the lender's staff underwriter reviews these conditions, as well as the entire file for your loan which has been compiled by your Loan Consultant and Loan Processor. |
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A typical loan file may contain a hundred pages or more. And, will almost always include the
following...
-- The 1003 loan application
-- The 1008 transmittal summary
-- The tri-merged credit report
-- The lender's preapproval with conditions
-- A copy of the purchase contract (for purchase mortgages)
-- A copy of the property's appraisal with photos, and the appraiser's license.
-- All required verfications (VOR, VOE, VOA, VOM, etc.)
-- All required disclosures; signed and dated by the borrower(s); including the Borrower's
Certification and Authorization, Fair Lending Notice, Right to Receive Appraisal Report, Equal Credit Opportunity Act, etc.
-- Photo copy of the Borrower's Photo ID (Driver's License, Passport Photo, etc.)
-- Borrower's income documentation; (if applicable), paycheck stubs, W-2s, etc.
-- Title Report
-- Proof of Insurance (Property Hazard Insurance)
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The underwriter will usually have between 24-72 hours to review the contents of the file. Some lenders have
strict policies or promises that the file will pass through underwriting within 48-hours. The underwriter will review the file page-by-page, but will often pay particular attention to the borrowers' credit reports, the Title report, purchase contract and appraisal. |
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For the sake of quality control, some mortgage lenders will run their own automated appraisals on the
property. This is drawn from a nationwide database of properties accessible by computer which have the capability of providing at least a "ball park" estimate of the property's value. If there are any significant discrepancies between the automated appraisal and the actual field appraisal, the underwriter can request an appraisal review. This may add an extra day or two to the file's time in underwriting. |
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For most borrowers, if they've adhered to their Loan Consultant's advice regarding how to maintain their
credit while moving through the mortgage process, the underwriting phase usually amounts to little more than a formality. |
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We're almost at the end of the process. Everything that's been done up to now leads us to the desired
conclusion of successfully closing and funding the loan... the subject of our seventh and final step. |
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Learn about the
entire 7-Step Mortgage Process by following these links......... |
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Please also see...
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