If you are considering buying a home, or are currently in the process, understanding the underwriting process is key. Although it may seem slightly intimidating, it does not have to be. Underwriting is a normal and necessary step in your home buying journey. If you are feeling a bit overwhelmed, take a moment to review our quick guide to the Denver underwriting process
and feel more in control of this important step to home ownership!
What is underwriting?
Essentially, underwriting is the process in which your mortgage lender verifies your assets, income, debt, and any other relevant financial information necessary to finalize your home loan. Underwriters are financial experts that examine your finances and assess any risks. Once your future home is in the appraisal stage, your underwriter will work with your mortgage lender and advise them on your potential to manage your home loan. They will also work directly with you in order make sure all necessary paperwork is completed and submitted.
Why is it necessary?
Underwriters help keep you and your lender from engaging in a potentially high-risk home loan situation. Because of this, underwriters will likely investigate your credit history and credit report, confirm your employment or sources of income, assess your debt-to-income ratio, verify the amount of savings you have and your down payment, order an appraisal of your future home (or assessment of the home’s value), and look into anything else that is financially relevant to purchasing your home. Basically, the underwriting process helps keep you from closing on a mortgage you may not actually be able to afford. By assessing and verifying all your financial information, the underwriter helps your lender make the final decision on whether or not to authorize your home loan.
What can I do to help the process?
Although much of the underwriting process happens without your direct involvement, there are some things you can do to help the process along. For instance, your underwriter may need you to provide additional documents, like bank statements or deposit slips, to help provide evidence of earnings, assets, or property. If this happens, be sure to retrieve the exact forms or records requested and return them to your lender or underwriter as quickly as possible. If you experience difficulties finding the documents or have questions about what exactly is needed, contact your underwriter immediately and ask for clarification. By communicating promptly with your underwriter, you can help ensure the process runs efficiently for your lender and yourself. You should also avoid making large purchases, applying for credit cards, or engaging in any other activity that could impact your credit report until your home loan has been finalized.
If you or your business is looking for assistance during the underwriting process, Aspen Claims Service
can help. Our large, nationwide team of expert adjusters is available to assist with daily claims of any size, inspections, underwriting, catastrophe claims, and more. Contact Aspen Claims Service today at 888-819-5904 to learn how we can help and experience the Aspen difference!