What happens in the dark hole of loan approval?
To many the loan process is a mystery to be endured, usually with a sense of anxiety. A little basic understanding may make this aspect of buying or refinancing a home more comfortable. It all starts with the loan application. A complete and accurate application will make the process smoother, so invest additional moments at the beginning and save aggravation later. Next, The lender (or your mortgage broker) will verify all the key information on the application. The request you receive for pay stubs, W-2’s, tax returns, bank statements and the like are to verify those amounts shown of the application. Finally, the application, with the appropriate supporting documents, goes to an underwriter – that’s the decision maker. The underwriter confirms that the application fits the parameters of the loan program applied for, and determines that the borrower’s qualifications meet the standards for approval, then hopefully, approves the loan. It is common for underwriters to approve loan applic