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Process

Underwriting

The process a lender uses to evaluate whether to approve your mortgage application. An underwriter reviews your credit history, income, employment, assets, debts, and the property's appraisal to assess the risk of lending to you. The underwriter may request additional documentation, such as bank statements or explanation letters. Underwriting typically takes one to three weeks and is the final hurdle before you get the green light to close.

Why It Matters

Underwriting is a key milestone in the homebuying process. The typical purchase takes 30-60 days from accepted offer to closing, and each step — including underwriting — has specific timelines, requirements, and potential pitfalls. Being prepared for each phase prevents costly delays.

During underwriting, communication with your real estate agent, lender, and other professionals is critical. Respond to requests quickly, keep documents organized, and ask questions if anything is unclear. Delays at any step can jeopardize your closing date or purchase agreement.

Real-World Example

In a typical home purchase, underwriting occurs within a specific window. Missing deadlines related to underwriting can result in contract violations, lost earnest money, or even a failed transaction. Stay ahead of schedule.
Pro Tip
Create a homebuying timeline checklist and mark every deadline related to underwriting. Set calendar reminders 2-3 days before each due date so you're never scrambling at the last minute.

Related Terms

Credit ScoreDebt-to-Income Ratio (DTI)AppraisalPre-ApprovalLoan Officer

Tools That Use This Concept

MMortgage Payment CalculatorMAffordability CalculatorMClosing Costs Guide
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