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An Overall Understanding of the Mortgage Underwriting Process

Mortgage underwriting is an integral aspect of the mortgage approval process. Once you have been successfully pre-approved for the mortgage loan, the application will be transferred from the loan officer to the mortgage underwriter. The process will make sure that your financial profile will meet the regulations and criteria of the mortgage loan. The mortgage underwriting process holds a deeper significance in determining whether the loan request would be accepted or rejected.

Mortgage Underwriting

Mortgage underwriting is also known as the real estate underwriting. It is a procedure wherein the mortgage lender will authenticate your asset and its credit-worthiness so that you could get a home loan.

Mortgage underwriting is a mandatory process and the lenders have to verify your assets before granting for the fund. The process might take time from 2-3 days and at the most, it can go up to a week.

Outsourcing Mortgage Underwriting Service

Due to the emerging challenges and timelines involved in the underwriting process, outsourcing the mortgage underwriting service has gained immense popularity. In the present market scenario, numerous mortgage and foreclosure companies that have been established in the nook and corner of the world, especially in offshore regions such as India, the Philippines, etc.

The popular mortgage underwriting services that are outsourced includes:

  • Support for Credit Unions – Fulfilling the loan requirements, automated underwriting system, risk management, and reviewing the title/appraisal.
  • Short Sale Support – Offering mortgage closing support, market analysis, evaluating the deficiency, clearance of short sales title, and mortgage appraisal assistance.
  • Loan Modification – Document reviewal, income underwriting, and finishing the fulfillment process.
  • Mortgage Underwriting Support – Includes loan mitigation, reorganization of the interest rate, reducing the principal amount, and so on.

Mortgage Appraisal Underwriting – Document verification, reviewing the decisions, and validating the pre-underwriting process. When we talk about the mortgage underwriting service, there are two types involved – Automated and Manual underwriting.

Manual underwriting is done by humans. The underwriter will work on the loan reviews of your loan application. It will involve the analysis of the documentation process and will help in determining whether you can afford a loan or not. In an instance, where you do not have a credit history, the mortgage lender will prefer the manual process. The manual underwriting involves a bulk of paperwork and can consume a lot more than the expected time.

Automated Underwriting is a computer-based procedure and it is largely used for handling various kinds of loans. With a few amounts of detail such as annual income or address, the computer software/program can capture information such as credit history, especially when you have an available credit score.

The five steps involved in the mortgage underwriting service includes:

  1. Reviewing the basic finance details such as debts, income, etc. and enabling a run on the credit check
  2. Verification of the income documents such as tax returns, bank account settlements, etc
  3. Implementing an appraisal of the property
  4. Conducting a title search and title insurance
  5. Deciding on the underwriting whether it is approved, denied, approved with conditions, or suspended

Apart from the above-mentioned information, there is an important area that you should focus upon – tips to boost the mortgage underwriting service.

  • Ensuring that the paperwork involved in the mortgage process is reduced
  • Responding to the underwriter’s request instantly for gathering more information and supporting records/documents
  • Working towards maintaining an excellent credit score during the complete underwriting process
  • Keeping constant contact and communication with your mortgage broker/lending and keeping an updating on the application status

Outsourcing the mortgage underwriting service is an effective solution as it will render the solutions at an affordable cost and remove all kinds of fraudulent activities. Mortgage Outsourcing 360 is an offshore-based mortgage and foreclosure service provider, specialized in providing cost-effective and perfect underwriting solutions. Choosing us will help you to avail the services provided by our trained underwriters and you can experience the merit of instant loan approvals. So, why wait? Contact us at info@mortgageoutsourcing360.com


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