Step 7 Home Buying 101: What Happens During Underwriting
- Restoration 43
- 3 days ago
- 2 min read
Updated: 11 hours ago
Step 7 in Our First-Time Buyer Blog Series
You’ve found your dream home, inspections are done, and your appraisal is in—now your file enters underwriting, the final step before you’re officially cleared to close! 🙌🏾
Let’s break down what this means and how to set yourself up for success. If you missed the previous posts catch up here, it's time for your next big move.
🔍 What Is Underwriting?
During the underwriting process, your lender reviews all of your financial information—documents, income, debts, credit score, assets, and job history—to make sure you meet the requirements for the loan.
This is your lender’s final check before giving the green light to move forward.
📑 What’s the Difference Between the Loan Estimate and Closing Disclosure?
Loan Estimate: You receive this shortly after your offer is accepted. It gives you a benchmark of your expected monthly payment and how much cash you’ll need to close.
Closing Disclosure (CD): This is the final version of your loan terms, including exact closing costs and payments. It must be delivered at least 3 business days before closing so you have time to review.
👉 Tip: Compare your Closing Disclosure to your original Loan Estimate to make sure everything matches up!
Tips to Get Fully Approved by the Underwriter
Here’s how to boost your chances of receiving full approval without delays:
✅ Maintain Good Credit: Avoid opening new credit lines or missing payments. Keep your credit score stable throughout the process.
✅ Provide Complete Documentation:
Submit your W-2s, tax returns, pay stubs, bank statements, and proof of assets quickly and accurately.
✅ Maintain Stable Employment: Lenders want to see job consistency. Changing jobs or income during underwriting can raise red flags.
Once underwriting approves everything and your CD is acknowledged, you’re on the final stretch—closing day is almost here!
I’ll walk you through what to expect and make sure no detail gets missed.
Invest Now...Ownership is Key
📲 254-307-1596
👉🏾 Follow @watsoninvestrealtor
📚 Missed the earlier posts in the series?
Start with Part 1 here and catch up on every step of your home buying journey.
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