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Your Loan is Reviewed by an Underwriter

Your Loan is Reviewed by an Underwriter

The most important step in the loan application process, after your home value is determined, is the loan review by a Conventional, FHA or VA underwriter.

It is important to know that before we submit your loan to an underwriter we do everything within our professional power, through diligent pre-processing, to make sure the underwriter has the ability to issue a Conditional Approval on every file. There are several things that you can do to help us move your loan to underwriting as quickly as possible.

Underwriting

The underwriter acts as a “gate keeper”, protecting the interest of the lender and safeguarding the limited funds they have to lend. Underwriters follow strict black-and-white guidelines established by industry investors. These guidelines are harsher than they were during the mortgage lending boom of 2002 – 2008. The days of what many industry professionals describe as “common sense underwriting” are long gone.

Once an underwriter reviews your refinance application they will issue one of three determinations: a Conditional Approval, a Suspension, or a Denial.

When a Conditional Approval is issued, a member of our Pipeline Team will call you immediately to review the approval and discuss any conditions needed before we can schedule your loan to close.

Rest assured that an underwriter issuing a Suspension or Denial on your loan does not end your relationship with Meridian Home Mortgage. This is where Meridian Home Mortgage steps in to defend you, as your advocate. We have an entire team at Meridian dedicated to overcoming underwriting objections, re-working your application, and unearthing underwriting errors.

Still, we will be candid with you at anytime during the process if we do not believe your application has an opportunity to close. Just know that we are devoted to exhausting every last ounce of effort to match your family’s financial situation to a qualified loan program.

While Meridian will be shouldering most of the work, we have come up with a small list of things that you can do to help ensure that your loan closes as quickly as possible. Please do your best to adhere to Meridian’s list of Do’s and Don’ts while your loan is being underwritten.

Here are a couple of other important things to know:

  • Turn-times vary
    Depending on the type of loan for which you are applying and the saturation of the current market, the underwriting process for your application may take up to 5-14 days. A large portion of Meridian’s service to you is to gently, but proactively, nudge the underwriter to review your file as quickly as possible.
  • Disclosure Mailings:
    You will most likely continue to receive loan disclosures throughout the process, either electronically or through the mail from your designated lender. Although there may be cover letters with these lender disclosures that state you need to sign and return them, there is no need for you to take any action. They are simply being sent to you by the lender so that they remain in compliance with State and Federal disclosure laws. Feel free to discard these documents.

We appreciate your cooperation and patience while your loan is being underwritten. Please do not hesitate to call with any questions or concerns that you might have. We look forward discussing your upcoming Conditional Approval with you very soon.