We got you to the third & fourth checkpoints, Contract received & Sent to processing/underwriting, in our previous post.
Now we tackle the fifth checkpoint on your way to home ownership: Loan approval.
Congratulations, your loan has been approved by the underwriter. We will call you within one business day to review the items we need from you to resubmit your loan for final approval. We will also send you a list via our borrower portal. This is the easiest and safest way to get the items to us.
It is very rare that we get a loan approval that doesn’t require you to provide us with something, although that does happen from time to time. The most common item that we need is documentation that your earnest money check has cleared your bank account, which usually isn’t available when the loan gets submitted for initial loan approval.
There are generally a handful of other items that we will need to get from you—for example, a letter of explanation on why your year-to-date income is low or something regarding a recent inquiry on your credit report.
The underwriter’s job is to make sure that your loan meets the guidelines. Underwriters do a lot of “digging,” and people are often surprised at what they find. In the end, the underwriters whom we work with are looking for ways to approve a loan. They just need to make sure they have a properly documented file before they will clear us to close on your loan.
Next, we will tackle Checkpoints 6 & 7 – Appraisal received & Resubmitted for final approval.