5 Steps Involved in Mortgage Underwriting

The mortgage underwriting process is tedious and time consuming. Find out about the five steps involved in mortgage underwriting and how you can outsource it.

Mortgage underwriting refers to the process of determining the creditworthiness and the payment capability of the person who has applied for a mortgage loan. An underwriter would have to enter the person’s credit score, debts, incomes etc to evaluate the repayment capability of the applicant. Though there are software to help with applying or declining a loan, mortgage underwriting is a tedious and time consuming process that can shift your focus from your core functions.

Even with automation and strict rules in place, one cannot expect 100% transparency in the loan review process. Fraudulent applications can get through, thereby posing higher risks. Outsourcing mortgage underwriting services can not only speedup the mortgage processing process, but also ensure accuracy and a sharp reduction in overhead costs.

Here are five services that a specialized mortgage underwriting service provider can offer you:

  1. Getting the loan approved – For a loan to be approved, several conditions have to be met. Conditions like the credit score, income statements, purchase agreements and other such supporting documents have to be submitted to support the applicant for the loan. A team of professional underwriters can meticulously check all these conditions on your behalf and clear the loan in no time at all.
  2. Assistance with automation software – Today there is an ample availability of automated underwriting software and systems. Through outsourcing, you can effortlessly run mortgage loan applications through the software of your choice and evaluate if it will be rejected or accepted. You will not need to worry about back-end work like verifying the data before it gets entered into the underwriting software.
  3. Extensive fraud reviews – You want to avoid fraudulent loan applications but are concerned that some genuine applications may get rejected. This is possible because of incorrect data entry or omission of information when the loan is applied. An outsourcing partner can help pinpoint fraudulent factors during loan application. This process, though tedious, is necessary and can help you save on time. The outsourcing team can point out factors like large deposits/withdrawals, several cash transaction in different back accounts or mismatched property details.
  4. Detailed title review – Once the loan is passed through the fraud review, a title review would be conducted to ensure that the property is clean and free from legal claims or lawsuits. Every single minor and major detail regarding the title document will be carefully assessed to ensure the seamless movement of the loan application.
  5. Appraisal review – In this final review, the team of underwriters will assess the true value of the property as well as the veracity of the collateral documents which will support the mortgage loan application. Details like the appraiser’s signature, the license number, sales history, location maps and photographs will be reviewed in detail.

Do you want to leverage the benefits of outsourcing mortgage underwriting? Find out more here.

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