Underwriting is a crucial part to the loan process. Underwriting is the step in which your loan application goes through review and is either approved or denied. There are different types of ways your loan can be approved. It can be approved through the use of automated underwriting or it can be approved through manual underwriting.In many cases an automated underwritten approval only requires the matching documents listed on the condition list. This means as long as the mortgage broker supplied complete and accurate information when processing the automated approval, your loan should go through smoothly and without surprises in the end.
Automated underwriting is an electronic process which can offer very quick approvals. Manual underwriting usually takes two to five days and is needed more often with non conforming and subprime loans.
Presentation of your file, application, and total credit package to an underwriter is of the utmost importance for your loan. This is why the use of an experienced, knowledgeable and trustworthy mortgage professional is a crucial part of your mortgage transaction. A great loan presentation can sometimes be the difference between an approval of your home-loan and denial of your home loan.
When applying for a mortgage, make sure that you reveal all of your assets to your mortgage professional. Any 401k or stock information, could be the little extra that you needed to get an automatic underwriting approval.
Fannie Mae's Desktop Originator (DO) and Desktop Underwriter (DU) are the most popular automated underwriting systems in the mortgage industry. DO is used by brokers and DU by lenders. Mortgage professionals can get loan approvals in literally minutes with these automated underwriting systems.
