Step 6: Underwriting Review
Underwriting is the most consequential step in the mortgage process. The underwriter—a trained credit risk professional—analyzes three core areas: you (credit, income, employment history), the property (appraisal value, condition, title), and the transaction (down payment source, purchase price, loan-to-value ratio). Using both automated underwriting systems (AUS) and manual review, they determine whether the loan meets investor guidelines. The result is an approval, a conditional approval, or a denial.
Key Takeaways
- ✓ Underwriting can take 3–10 business days; complex files or high-volume periods take longer.
- ✓ Most loans receive conditional approval rather than a clean approval on first review.
- ✓ Do not make any major financial changes—job changes, new debt, or large deposits—during underwriting.
- ✓ If denied, you are entitled to an adverse action notice explaining the specific reason(s).
What Happens During Underwriting Review
Detailed content for this step is coming soon. Check back for in-depth guidance on underwriting review, including common questions, timelines, and tips from our licensed mortgage advisors.
What You'll Need
- ■ Explanation letters for any credit inquiries, derogatory marks, or large deposits
- ■ Updated pay stubs or bank statements if more than 60 days old
- ■ Documentation for any unusual deposits (gift letters, asset sale proceeds)
- ■ Complete co-borrower information (if applicable)