Originations and Underwriting: Next Steps After Your Loan Application

You’ve looked at homes, filled out a loan application, and your application is now ready for review by a Loan Specialist and underwriting. But what exactly are the next steps? If you are a first-time homebuyer or it’s been a while since you bought your first home, you may not know what to expect. That’s why we’re here to provide you with an easy breakdown, every step of the way.

The Loan Application Is In

Generally, loan origination is the full process from applying to closing, of which underwriting is a part. Once your Loan Specialist receives your application, they can explain what type of home loan products may be available to you and estimate the loan amount and interest rate you may quality for. To do this, they review your income as disclosed in your application along with checking your credit score and any debts you may have on your credit report and application.

If the Loan Specialist conditionally approves the application, you will receive a Loan Estimate and other documents and information within three business days after your application was received. The next step in the process is underwriting.

Underwriting the Home Loan Application

Underwriting is where the lender verifies the information in the loan application to confirm the applicant’s ability to repay the loan and ensures the value of the property used as collateral for the loan meets the lender’s loan to value criteria. Basically, the lender weighs the financial risk of the loan after the underwriter confirms and verifies all of the necessary information.

Our team of Loan Processors will collect documentation needed to underwrite the loan. Below are examples of documentation we could request from you or a third party like your bank or employer:

• Recent pay stubs
• Benefit income letters for retirement, Social Security, veteran status, etc.
• Credit history
• Tax returns
• Bank statements

This list doesn’t cover everything as the information needed to underwrite your loan is specific to your income, employment history, debts, location for the new home and more. Your Loan Processor will communicate with you regarding the information you have provided and any outstanding information required and generally keep you up to date throughout the process.

Can You Help Underwriting Go Smoothly?

We work hard to make the origination process as easy and quick as possible. However, there are factors that can either delay this process or help it go more smoothly. If an applicant changes jobs during the home loan process or opens a new line of credit, this can affect the underwriting and add more steps to account for the changes. If you don’t already have property for your new home, finding a community or land where you can place your new manufactured home may also take time, depending on your location.

You can help the home loan process with good communication, like responding to questions quickly and sharing the best way to reach you. Also, having any documents you may need ready, based on the list your Loan Specialist provided you when you first turned in your application, may make underwriting and satisfying loan conditions run more smoothly.

Once the conditions of your loan are met and your application is fully approved, your closing will be scheduled. Congratulations! You’re almost ready to settle into your new home! To learn more, check out our breakdown of the steps of the home loan process.