When a loan is in underwriting, it means that the lender is reviewing and verifying all the information provided in the loan application to determine whether the borrower meets the criteria for approval. The underwriting process is a crucial step in the loan process and typically occurs after the borrower has submitted their application and provided all the necessary documentation.
During the underwriting process, the lender will review the borrower's credit history, income, employment, debt-to-income ratio, and other financial information. The lender may also request additional documentation or clarification on certain aspects of the borrower's application.
Once the lender has reviewed all the necessary information, they will make a decision on whether to approve or deny the loan. If the loan is approved, the lender will typically provide a loan commitment letter outlining the terms and conditions of the loan. If the loan is denied, the lender will provide an explanation as to why the loan was not approved.
The underwriting process can take several days to several weeks, depending on the complexity of the loan and the lender's workload. During this time, it's important for the borrower to stay in communication with the lender and provide any additional information or documentation that may be requested. It's also important to ensure that all information provided in the loan application is accurate and complete to avoid any delays or complications in the underwriting process.
