The Lending Process – Submission to Underwriting

By Ed Connolly, Broker/Associate of Coastline Realty 
There are several components to be dealt with as you near your closing date. From inception to final approval, your lender will assign these components different labels so as to facilitate the process. You will start with an application which will be processed and submitted to underwriting. All stages are important and must be completed in an orderly manner, but submission to underwriting is inherently a higher level of importance.
Upon submitting an application to a lender, your file is prepared to be submitted and included in the company’s underwriting system. At this point, a list of items that need to be included in the loan package will be generated and verified. Your loan officer will request an initial battery of documents. They will be looking for pay check stubs, bank statements, tax returns, etc. Once these documents are collected, they will be sent to a loan processor who will prepare your file for the underwriter.
Before the actual submission, your documentation will be reviewed by the processor who will also order several third party services and reports needed to complete your file. A property appraisal and perhaps title work are examples of what the processor would order. It is their responsibility to make sure that the underwriter has everything needed to proceed to closing. It is at this point that the loan is submitted to underwriting.
It is the underwriter’s job to compare what is in the file to what is necessary to complete the lending process. If there are questions or if something in the file does not directly correlate to what is needed, the underwriter will contact the processor for clarification.
Submission to underwriting is the final step before closing docs are ordered. The review period can be typically a couple of hours or slightly more. The time frame will be impacted by the number of applications under review by a particular underwriter. Once your loan is ultimately approved, the underwriter clears the package for loan docs and your file is delivered in advance of settlement.
For more information on this process, contact Ed Connolly, Broker/Associate of Coastline Realty, directly at (609) 602-3089 or ed@coastlinerealty.com. Visit the office at 941 Columbia Ave., Cape May, or call (609) 884-5005. For more information on Coastline Realty, visit www.CoastlineRealty.com.