Application processing

By the time you have filled out all of the required paperwork, you might feel as though you deserve a quick decision on your loan. In fact, this last leg of the loan application process can take up to a month and will require both your patience and cooperation.

So what exactly happens during that month? During the first few weeks, the lender will assign your file to an employee who has the arduous task of verifying all of the information you have submitted. This stage of the loan application process involves corroboration of your income, as well as other financial information.

After your personal details have been verified, your file will be passed to an underwriter. The underwriter’s job is to take in your application materials as a whole and determining whether your loan should be granted. You can think of this person as the final judge of the loan application process.

Meanwhile, as you wait for these things to happen, the lender will give you several important pieces of paperwork. The first is a document detailing what your closing costs will be. While companies are required by law to provide these documents, they are not always entirely accurate. Be aware that your closing costs may well amount to more than those detailed in the document. You will also receive a document estimating your monthly payment amount and financing charges.

As your loan application process enters the final stages, make sure that you keep in regular touch with the mortgage company. They may require additional paperwork or other information, which you should promptly submit in order to get a decision faster.