RCM National Realty - Underwriting
What is it?
Financial institutions use underwriting to measure the legitimacy of potential borrowers. The institution will conduct an extensive exam of your financial and credit backgrounds. This will help them determine whether you are a great loan candidate. There are several steps in the underwriting process, and they can be tedious and lengthy, but have no fear! Your RCM agent will help you through every step of the underwriting process.
The Underwriting Process
When you find yourself in a place where underwriting is necessary, congratulations! That means you have almost completed your home-buying journey. You will need to procure your specific mortgage application, including whatever application fee is assessed. Request that the lenders secure your agreed-upon rate until you close on the house. Legally, your lender must estimate all your closing costs and inform you of those numbers. These costs will generally range from $1,000 to $10,000. Make sure you read and agree to all the fees before you sign. These costs typically consist of your title insurance, attorney’s fees, lender’s appraisal fee, home inspector fees, prorated property taxes for the rest of the month, courier fees, a percentage of the loan amount (referred to as “points”), transfer taxes, and a government recording fee.
Within 7-10 days, check in with your mortgage company to make sure they have every document they requested in the loan application. If you’ve secured your interest rate, ensure that the underwriting process hasn’t been delayed by a straggling document. Don’t plan on having them call you if you are missing something. Be proactive and call them yourself!
Lenders gauge both your ability and what they view as your “willingness” to pay back what you have borrowed. Willingness is usually measured by your credit ratings, as reported by other bills and loans that you have repaid. This can be tricky for lenders. However, your financial ability is much easier to measure. Experts will combine your income, current debt, and borrowing history. In the underwriting process, these are the 3 primary items your potential lienholder will examine.
The lienholder will also want to know that th property you are purchasing – rather, the property they are purchasing – is worth the investment. But more than anything, they want to know if the house is as valuable as what you have said you will repay. They will hire their own appraiser to look into this.
Read more on the subject here: www.homebuyinginstitute.com/homebuyingtips/2010/02/what-is-mortgage-underwriting-and-how.html#ixzz3a7r9HBj8
RCM National Realty is an exclusive boutique real estate company. Our mission is to help clients customize their buying or selling experience to best fit their families’ schedule and housing needs. With our diverse group of agents, it is easy to find a qualified professional who understands your market of choice. Let RCM National Realty open the doors to your real estate dreams!