The underwriting phase is the actual decision making step of the process. It looks at all of the facts and documents and determines if there are any inaccuracies and or inconsistencies. The underwriter will also double check for errors and make sure the application meets all conditions of the loan. The underwriter looks at your application and supporting documentation to see if the file meets 3 basic criteria. The 3 C’s of mortgage underwriting.
- Credit. Your credit score and history of paying creditors on time.
- Capacity. Your Income, Assets(Including Down Payment), and ability to pay the mortgage back.
- Collateral. The value, marketability of the property
The underwriting review process can take a few days to a couple weeks based on documentation. Once the file is reviewed, the file can be approved, approved with conditions that need to be cleared, suspended pending additional clarifications, or denied.