Role Of Mortgage Underwriter During Mortgage Process
This BLOG On Role Of Mortgage Underwriter During Mortgage Process Was UPDATED And PUBLISHED On October 2nd, 2019
The mortgage approval process has multiple steps.
- There are many mortgage professionals are involved in the mortgage approval process
- The first point of contact borrowers deal with are loan officers
- Mortgage Loan Officers are the mortgage professionals who initially qualify borrowers
- They interview borrowers, take their mortgage loan application, run credit, collect mortgage documents, review docs, and run Automated Underwriting System Findings
- Once the loan officer feels that borrower qualifies for a home loan, he or she will issue a pre-qualification letter and prepares borrowers for processing
In this article, we will cover and discuss The Role Of Mortgage Underwriter During Mortgage Process.
Mortgage Approval Process
Borrowers first deal with the mortgage loan originator:
- The loan officer first qualifies the client
- Once borrowers are qualified and meet all mortgage guidelines then the mortgage processor starts processing the loan file
- Once the mortgage loan originator runs credit and reviews the credit report and Automated Underwriting System AUS Findings, then documents are requested by borrowers
- The mortgage loan processor then reviews all data collected by the mortgage loan originator and prepares the mortgage package
Role Of Mortgage Processor
The role of the mortgage processor is to prepare the mortgage file for a mortgage underwriter to review.
- If there is anything missing, the mortgage processor contacts borrowers
- The mortgage processor’s job is to get everything ready to submit to underwriters
- The underwriter is the most important person in the mortgage loan approval process
- The role of mortgage underwriter is to make sure whether or not a borrower qualifies for a mortgage
- The role of mortgage underwriter is to decide whether borrowers get approved
- Underwriters are the professionals in the mortgage process who issues a clear to close
- A Clear To Close is the clearance to fund the mortgage loan
- Borrowers never have contact with the mortgage loan underwriter
- A mortgage underwriter has a lot of power
- It will be the underwriter’s discretion whether a borderline loan gets approved or not
Qualification Of Mortgage Loan Applicant
The role of mortgage underwriter is to make sure borrowers meet all the mortgage guidelines.
- If it is an FHA Loan, the role of mortgage underwriter is to make sure that borrowers meet all HUD Guidelines
- Not only does the borrower need to meet HUD guidelines, but the role of mortgage underwriter is also to make sure that borrowers meet the lender’s overlays
- Mortgage Lender Overlays are lending requirements that are above and beyond those of minimum mortgage lending guidelines
Once the mortgage underwriter feels that borrowers meet all the guidelines and overlays of the particular lender, the underwriter will issue a conditional loan approval.
Clear To Close During The Mortgage Process
Once a conditional mortgage approval is issued, the file goes back to the mortgage processor.
- It is the processors’ job to gather all conditions on a conditional mortgage approval
- Once the processor gathers all the conditions, the processor submits all conditions for a clear to close
- The same underwriter who issued a conditional mortgage approval gets the file back
- The underwriter will thoroughly review all conditions
Two things will happen at this time:
- If the borrower meets all conditions on the conditional loan approval, a clear to close is issued by a mortgage underwriter
- If the borrower does not meet all the conditions, then the file goes back to the mortgage processor
Additional conditions that were not on the initial conditional loan approval can be issued by mortgage underwriters.