Mortgage Approval Process
The mortgage application process starts when you submit all of your financial and credit information to the mortgage lender. Information such as two years tax returns, two years W-2s, two months bank statements, signed mortgage application, signed disclosures, and other forms required by the mortgage lender. The mortgage loan application then gets processed and the mortgage loan processor submits it to the mortgage loan underwriter. The mortgage loan underwriter underwrites the mortgage loan application and if everything is good, the underwriter will issue a mortgage loan approval which will have conditions. Conditions can be things that need to be met such as title, appraisal, income verification, IRS verification, insurance information, and other items that may need verification on what the mortgage loan applicant has listed on the mortgage application. Once the mortgage loan applicant submits all the conditions, the underwriter checks off all of the items received to see if they can issue a clear to close.
Clear To Close
A clear to close is what the main goal is in the mortgage approval process. A clear to close means that the mortgage lender is ready to fund the loan. Mortgage lenders have different policies on how they issue a clear to close. Many mortgage lenders allow the mortgage loan underwriter to issue a clear to close once he or she approves all the conditions. However, other mortgage lenders have a QC Review process. How does a QC Review process work? A QC Review process is when the mortgage loan underwriter has checked off all of the conditions and has deemed the mortgage loan application totally approved and feels comfortable with issuing a clear to close. However, the once the mortgage loan underwriter deems the mortgage loan application clear to close, it gets sent out for QC Review underwriter which goes through everything the mortgaqge loan underwriter has done to see that there are no errors. The QC Review underwriter often times will run a soft credit check pull to make sure that the mortgage applicant has not incurred any additional debt and make sure there are no fraud alerts issued on the mortgage loan borrower. Once QC Review underwriter signs off on the QC Review, it goes back to the original mortgage loan underwriter for them to sign off on a clear to close. The QC Review process normally takes 24 to 48 hours.