Underwriting is the third phase in The Loan Process. It involves the approval of your loan. This is done by an Underwriter, who reviews the loan application and subsequent documentation and decides whether or not you will be approved for the financing you’ve applied for.
While this phase can be nerve-racking for some, the reality is Underwriting is pretty straightforward. Ideally, your Processor should know before the loan is even submitted to underwriting, whether or not there will be any trouble in Underwriting. While this isn’t always the case, it is the goal of our processing.
Most approved loans, come out with conditions. Conditions are items that must be satisfied before the Underwriter can “Clear” the file for Closing. Once all of the conditions have been satisfied, the Underwriter will issue the “Clear-to-Close” (CTC).