The underwriting process is one of the most critical steps when obtaining a mortgage, but it can also be one of the longest. As a borrower, having your home loan application stuck in underwriting for weeks or even months can be incredibly frustrating. Fortunately, there are several strategies you can use to help expedite the underwriting process and get your mortgage approved faster.
Understanding Underwriting
Underwriting refers to the detailed review conducted by the lender to assess your creditworthiness and confirm you qualify for the loan. Underwriters carefully analyze your income, assets debts, and credit history to determine if you’re a low or high risk for defaulting on the mortgage.
The time it takes to underwrite a loan can vary greatly from as little as a few days to over a month in some cases. The more complex your finances are the longer underwriting tends to take. However, even for borrowers with straightforward applications, underwriting can often be slower than desired.
While you can’t force underwriters to work faster, you can take proactive steps to speed up the process and avoid unnecessary delays.
7 Tips to Expedite Underwriting
Here are 7 tips to help accelerate underwriting so you can close on your home loan faster:
1. Provide Accurate, Up-To-Date Documents
One of the main reasons underwriting takes so long is that documents are sent in that are missing or out of date. Make sure you give your lender up-to-date bank statements, tax returns, pay stubs, and any other paperwork they ask for. Make sure that all of your information is correct, including your income, job, and address.
2. Minimize Changes to Your Finances
Underwriters want to see that your finances are stable, so don’t make any big changes while your application is being looked at. Don’t get a new job, apply for new credit, or buy big things that could change your debt-to-income ratio.
3. Respond Promptly to Any Requests
Your lender may ask for additional documents or clarification during underwriting. Be sure to respond to any inquiries right away to prevent your application from being stalled.
4. Keep Your Lender Informed
Maintain open communication with your loan officer throughout the underwriting process. Let them know about anything that could potentially affect your application, like a job change or planned expenditure.
5. Explain Any Credit Issues Upfront
If you have negatives like late payments on your credit report, draft a letter explaining the circumstances to your lender upfront. Providing context can help prevent underwriting delays.
6. Avoid Cashing Out Investments
Taking money out of your stocks or retirement accounts right before the closing can be a red flag and make the underwriting process more difficult. Refrain from liquidating assets until after your loan is approved.
7. Be Patient and Flexible
While it’s reasonable to follow up if underwriting seems to be taking too long, avoid constantly contacting your lender as this can slow things down further. Understand that delays are sometimes unavoidable.
Leveraging Technology to Speed Up Underwriting
Lenders today are relying more on technology like automated underwriting systems to help accelerate the process. As a borrower, you can benefit from these innovations:
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Online applications allow you to submit all required documents electronically rather than having to mail or fax paperwork. This reduces processing times.
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eSignatures let you sign closing documents digitally via email or portal rather than having to coordinate wet signatures.
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With direct data access, underwriters can check your financial information right away electronically, without having to wait for it to be checked by hand.
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Automated decision engines use algorithms to pre-screen applications, reserving manual review for complex cases only.
By selecting a lender that utilizes these types of technologies, you can further expedite the underwriting process and get into your new home faster.
When to Follow Up on Underwriting Delays
As a general rule, underwriting takes between 2-4 weeks to complete for conventional loans. Here’s when you should follow up if your application seems to be taking longer than normal:
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1 week – No action needed. Underwriting is still within the typical timeframe.
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2 weeks – Check in with your loan officer for a status update. See if any additional documents are needed from you.
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4 weeks – Follow up again if you still don’t have an approval. Ask your loan officer to escalate if no outstanding items remain.
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6 weeks – If underwriting continues to drag on after 6 weeks with no clear reason, it may be time to speak to a supervisor about getting the delays addressed.
The key is maintaining open communication with your lender and providing any requested items promptly. With diligence on your part as the borrower, you can absolutely speed up underwriting and get your loan closed faster.
FAQs on Expediting Underwriting
How long does underwriting usually take?
For most conventional loans, underwriting takes 2-4 weeks on average, though it can vary based on your financial situation and selected lender.
What causes underwriting delays?
Common reasons for underwriting delays include missing documents, changes in applicant finances, inadequate communication, and heavy lender workloads.
Can I close on my mortgage if underwriting is not complete?
No – Underwriters must fully approve your loan before closing can occur. The underwriting process must be fully complete.
Does getting pre-underwritten speed up the process?
Yes – Having your lender pre-underwrite your application prior to making an offer on a home can shave several weeks off the process after having an accepted offer.
How much can I speed up underwriting?
While every case varies, adequate preparation by the borrower and technology used by the lender can typically reduce underwriting timelines by 1-2 weeks.
The Bottom Line
Underwriting is a necessary step to securing mortgage approval, but one that borrowers often wish could be expedited. By providing accurate documentation upfront, limiting financial changes, and maintaining close contact with your lender, you can reduce unnecessary delays during the underwriting process. With the right strategies, you can shorten underwriting timelines and get into your dream home faster.
Advise Your Clients to Maintain the Initial Credit Profile
As a responsible mortgage loan officer, it’s part of your job to help make your clients’ loan process go smoothly. It includes advising the borrowers not to do anything that can impact their credit score. Ensure you remind your clients that any major purchases like a new car, applying for other loans, or quitting their job can negatively affect their application during the underwriting process. It’s important to maintain the initial credit profile that your client applied for the loan with. Getting new lines of credit doesn’t mean your loan will be denied, but it can delay the process.
7 Tips to Help MLOs Speed Up The Underwriting Procedure
As a loan officer, one of the most important things that will accelerate the underwriting process and increase the chances of successful mortgage loan approval is providing your client’s correct and most recent information. The data you provide to the underwriter for examination should be accurate and verifiable. This means that if your client moves to a new place or gets divorced, the information should be updated in the application that you submit, and there should be documents present as proof of changes.
The changes may seem minor but can significantly impact your mortgage loan approval decision.