A mortgage file is submitted to underwriting after the Processor has completed the processing stage of the mortgage. The initial underwrite of the mortgage loan process typically takes 48 to 72 hours.
The Processor will notify you via email and/or the Floify secure document portal if any additional documents will be required after the initial underwriting approval is issued.
Initial Underwriting Approval
An Underwriter ultimately decides what is required for a full loan approval. The Underwriter will review the file and send the Processor a list of “conditions” that need to be met prior to issuing the “clear to close”.
The number and severity of the conditions depend on a variety of factors (such as program type and complexity of the file). Most of the time the conditions are minimal and administrative in nature.
Mortgage Loan Process OutlineClick here for an overview of each step.
- Loan Packaging & Lender’s Disclosures (1-2 days)
- Loan Setup (2-3 days)
- Processing / Credit Approval (2-3 days)
- Initial Underwriting Approval (2-3 days) <– YOU ARE HERE
- Sign the Initial Closing Disclosure (CD) (Immediate)
- Final Underwriting Approval (1-2 days)
- Docs to Title / Final CD Issued (1-2 days)
- Closing & Funding (TBD)
- After Closing
After Initial Underwriting Approval
After the initial underwriting approval is issued the Underwriter will send a list of “conditions” to the Processor. Conditions are items needed in order to get the final loan approval and close the loan.
There are a number of actions that are about to take place after the initial approval. The timing for each varies but know that they’re happening very soon. You will need to be ready to:
- Submit Conditions
- e-Sign the initial Closing Disclosure (CD)
- Provide Contract Addendum and Amendments (if applicable)
- Credit Report Update
- Another Verification of Employment
The Processor will update your Floify document portal to request additional documents from you should any conditions require your attention. Please provide any outstanding paperwork as soon as possible since we will be unable to move forward without them.
e-Sign the Initial Closing Disclosure (CD)
The Initial Closing Disclosure (CD) document will be emailed to you after the initial underwriting approval. Check out the Closing Disclosure (CD) page for details on the Initial CD and Final CD.
The timing of when you receive the CD email will depend on whether certain third party items have been received. You will be required to sign the CD immediately upon receipt. This is extremely important as there is a mandatory waiting period that has to occur before closing and the clock doesn’t start until EVERYONE signs the initial CD.
Provide Contract Addendum and Amendments (if applicable)
Please let us know ASAP if there are any new addendum or amendments to the contract. Examples include updates to seller concessions, a reduction in sales price, any lease-backs, etc.). Also, let us know if there are any repairs or issues with the home that may not be completed before closing.
Credit Report Update
Within a few days of closing lenders may update your credit report to reflect the most recent credit balances and view any new credit inquiries. Hopefully, you’ve followed the do’s and don’ts of a home loan and won’t have any issues.
The Processor will update the mortgage file with the new monthly balances. Underwriting will need to verify that you still qualify with the updated payments from the credit report.
The updated credit report will show any new credit inquiries since the initial credit report was pulled. New credit inquiries will require you to send in a letter explaining the purpose of each inquiry. Additional documentation will be required if any new credit was open.
Another Verification of Employment
Within 24 to 48 hours of closing, we will contact your employer to verify that you are still employed. (So don’t turn in your two-week notice the day before closing). There’s no action required from you.
Submit for “Clear to Close”
Your Processor will submit the file back underwriting for the final loan approval once all conditions have been procured. The Underwriter typically reviews conditions within 24 to 48 hours.
Assuming the submitted paperwork satisfies all the conditions (which is true the vast majority of the time) the Underwriter will issue the “Clear to Clear” or “CTC.”
Please note: there is a small chance that more paperwork may be required from you if the submitted conditions raise additional questions.
Loan Officer, NMLS # 729612