What to Expect During the Mortgage Underwriting Process
The mortgage process comes with a lot of steps. Mortgage pre-approval often gets the most attention, since that’s the one homebuyers really need to pass before they can begin putting in offers and being taken seriously by sellers. Some borrowers assume that once they successfully get past the rigorous pre-approval process, finalizing the home loan is just a formality. Unfortunately, that’s not always the case.
Underwriting is one of the most important and least understood steps in the mortgage process. This is when the lender takes a close look at your full financial picture and decides whether to officially approve your loan. It’s more in-depth than pre-qualification or pre-approval and it’s the last big hurdle before you get the green light to close on your home.
How Underwriting Fits into the Mortgage Process
Pre-qualification is a quick estimate of how much you might be able to borrow, based on self-reported financial information. It’s primarily for the borrower’s benefit and doesn’t directly impact loan approval.
Pre-approval goes a step further. The lender verifies your income, checks your credit, and gives you a conditional approval letter that you can use when making offers.
Underwriting happens after you’ve made an offer and submitted a full loan application. It’s a detailed review that determines whether the lender will officially approve your mortgage.
Some Borrowers Won’t Need to Provide Anything New for the Underwriting Step
If you’ve had a long-term, stable W-2 job and your finances are straightforward—regular paychecks, complete tax returns, strong credit, and clean bank statements—the underwriter might not need anything beyond what you already submitted for pre-approval. In these cases, they can usually complete their review using your existing documents.
However, it’s not uncommon for underwriters to request additional information. You may be asked to submit more if:
You have unusual or large deposits in your accounts.
There’s been a recent job change or employment gap.
You’re self-employed or have variable income.
Your credit report shows past issues or inconsistencies.
The documents you submitted for pre-approval are now outdated.
The lender needs to verify certain assets (like retirement accounts).
Examples of Additional Information the Underwriter Might Request
Most recent pay stubs or bank statements
Full federal tax returns
Letters explaining job changes, gaps, or large account activity
Gift letters (if any of your down payment is a gift from a family member)
Proof of homeowners insurance
Updated account statements or balance confirmations
These requests don’t mean there’s a problem. They’re just part of how lenders confirm that everything checks out.
What the Mortgage Company Does During Underwriting
Behind the scenes, the underwriter is reviewing your entire loan file. Their job is to make sure the loan meets all guidelines and that lending to you is a sound financial decision. This includes:
Verifying your income, debts, and assets
Reviewing your employment history and current job
Evaluating your credit report and score
Checking the home’s appraisal and title
Ensuring the loan fits the criteria for the type of mortgage you’re applying for (conventional, FHA, VA, etc.)
If anything is unclear or incomplete, the underwriter may issue “conditions,” or specific things that need to be resolved before final approval can be granted.
What Borrowers Can Expect During the Underwriting Process
Underwriting typically takes a few days to a couple of weeks, depending on how complex your file is and how quickly you respond to any requests. During this time, it’s important to stay in touch with your loan officer and respond promptly if the lender needs anything else.
You may receive one of several outcomes:
Approved – You’re clear to close.
Approved with conditions – Minor issues need to be resolved before closing.
Suspended – The underwriter needs more information to make a decision.
Denied – The loan cannot be approved under current circumstances.
Loan applicants who know their finances have some red flags can get ahead of underwriting complications by submitting as much documentation as possible during pre-approval. The clearer and more complete your documentation is from the start, the smoother this process will be.
Common Underwriting Challenges and How to Overcome Them
Credit report errors – You may need to provide documentation or dispute the error with the credit bureau.
Unverifiable income – If your income doesn’t show up through traditional W-2s, you might need to supply additional tax documents or bank statements.
High debt-to-income ratio – You may need to pay down certain debts or explore loan programs with more flexible requirements.
Low appraisal – If the home appraises for less than your offer, you might need to renegotiate with the seller or bring more cash to closing.
Looking for a Lender in Monroe, LA Who Will Guide You Through Every Step of the Home Loan Process?
A good lender will help you navigate mortgage underwriting hurdles and keep your loan on track. Ouachita Valley FCU is committed to helping borrowers in Monroe, Calhoun, and throughout Ouachita Parish. Our goal is to make the mortgage process smooth and straightforward for local homebuyers. Reach out today by calling 318.387.4592 to learn more about our mortgage options or get started on your application.
