Underwriting Career Guide and Counseling

Question: What does underwriting mean for the mortgage loan? My mortgage loan has been approved, but I have to wait for an underwriting at this point. Can you explain what does it mean?

Answer: Underwriting is the process where a person at the lender goes about matching up all the qualifying documents, like your W-2's, credit report, appraisal, bank statements, employment verification, etc. to the loan guidelines. Once they are sure that the initial info you supplied is true and fill it in with everything the lender needs to verify to be sure you can pay the loan back, they will fund your loan.

Question: How long does the underwriting process take on FHA loans with Countrywide? 1st time homebuyers and we submitted all paperwork needed on the 16th. Was advised today on the 22nd that our stuff was sent to underwriting. We have great credit, 10+ years of employment with the same company, and enough cash to close. Is there anything that could derail us? LO says we can close by August 6th, is that a reality or is she being optimistic? Thanks!

Answer: It depends on how busy they are. An underwriter has to be Direct Endorsement Certified by HUD in order to underwrite FHA/VA loans. Countrywide is pretty short on those folks. It actually takes only about 30 minutes to underwrite the file, but with them, will probably take about 48 hours. Ask your loan officer if they underwrite them "in house" or if they send them to an off-site location. If they send them to an off-site location (that means, not in his office), then count on it taking about a week.

Question: How do I seek funds or underwriting for a free admission christian Music community festival? We want o organize a christian music festival in the Beaver county are with bands, kids activities, food, we are sending out letters of interest to all county churches to see if they want to come and share thier mission and fellowship to the community. We have been asked to propose our idea to board members for possible underwriting. We have no budget and need to rely on the community. Are there grants availble. Any advice on how to propose this to board members greatly appreciated. our mission is to educate and share the love of our Lord.

Answer: Have the performers help you gather a list of names of people who would sponsor the event. You have to pay the sponsors with advertising since they are contributing all the money. Have a sign company make up banners with the advertisers' names and have the performers mention them often. I wish you would reconsider your idea of free admission. Charge $3 or $5. And set up booths that generate money by selling soda and snacks. If you are really brave you can set up booths that sell dinner like pizza (like the state fair does) but you may have to get a permit for preparing food. There are no grants. This is something you organize. Get to work.

Question: What does underwriting a loan mean and how long does it take? we are in the process of buying a house. it has been appraised and we have papers saying the loan has been approved. the lender said she sent the loan to underwriting. this is all new to me. what does it mean? how long does it take? is there still a chance it won't go through?

Answer: Hi Rainflower Underwriting a mortgage loan is a process of checking if the loan is sound, what the risk to the bank is etc. They are looking at the collateral value of the home, your credit worthiness, and if all the paperwork is in order. I've had some banks do it in 3 days while others have taken almost a month but, usually a week or two is normal. There is a small chance that it won't go through but I doubt they would have let it go this far if they didn't think it would be OK. :)

Question: Where can I find SC underwriting guidelines for health insurance? I'm looking for laws/regulations/guidance regarding underwriting and premium rates for health plans in SC. I've looked on the DOI website but it's not very user friendly.

Answer: Each company has their own underwriting guidelines. The companies have to file their rates with the SC insurance department. The insurance department does NOT set the rates.

Question: If underwriting is complete, does that mean the appraisal has come back? I am refinancing my home through FHA. The person working with me said that the papers from underwriting came back & all is good. Does this mean y appraisal has also come back? Can they finish underwriting before the appraisal comes in? The person working with me already went over all the information on the paperwork that came back from underwriting.

Answer: No they can't... they need the appraisal to determine the value. Just to be safe look at it this way, until the refinance is complete, consider your file in underwriting

Question: IS underwriting the last step in buying a home? Is this the last step in buying a home? How long does it usually take for underwriting to approve a loan?

Answer: Was your loan just submitted to underwriting? If so, then depending on how well your Loan Officer (LO) packaged the loan, your loan will either be approved as submitted, or be sent back to the LO with a list of Pre-Approval stipulations that need to be fulfilled. If the loan is approved, it will be ready for closing. Underwriting can take anywhere from a day to two weeks or more, it really depends on the backlog of the bank. After all that, and your loan is finally fully approved, you then sign the loan, and then the loan gets funded. But, don't be surprised if the bank comes back with a list of pre-funding stipulations that will also need to be fulfilled before they actually let the money go to the seller. Once the seller gets the money, then your loan is recorded, and you are the homeowner.

Question: What type of classes do I look for to get educated in underwriting for surety bonds? I am in position to eventually move to an underwriting position for a surety company. I'd like to have some kind of formal education as I happened upon my job by chance. I'm not sure what I'm looking for as far as what kind of classes I need.

Answer: I would take an accounting class that dealt with it (I can't remember whether it's first year or second) and a business law course. If available, I would take a course in insurance, but I don't know if they have those outside of the industry.

Question: What is a good research question for an essay on IPO's and underwriting syndicates? I haven't really had a lot of time to soak in a good knowledge base of IPO's and their underwriting syndicates, so it's hard for me to reflect on the subject and come up with a good research topic for an essay I have to do. What are some simply topics, or hypotheses I can do with respect to underwriting syndicates of IPO's?

Answer: If you haven't had time to soak in a good knowledge base, on what basis can you undertake research on someone else's hypothesis? I suggest you answer this question yourself. Make that part of your research. Here's a case study for you. http://news.cnet.com/2100-1024-5201978.html

Question: is it possible for a mortgage broker to put a rush on underwriting? My mtg broker sent my loan package with the requested conditions back to underwriting. We need to close by this friday. Broker said they put a rush on it, Is this even possible or is he just trying to make me happy?

Answer: it's possible but with the back log that so many lenders have it may not happen.

Question: What is an underwriting service assistant? I'm going for a job interview tomorrow for the job title of an underwriting service assistant. What does this job entail and how can i ace the interview?

Answer: In this underwriting support role you will provide valuable underwriting assistance to associates and brokers alike. The successful incumbent will play a key role in the entire underwriting process: from gathering risk information to liaising with Underwriters to answering broker queries to calculating premiums and issuing policy documents. Building broker relationships through visits, training and events forms an integral part of this position. The Knowledge, Skills and Abilities required are Good working knowledge of all lines of insurance, with a particular focus on Commercial Lines policy forms, content, terminology and underwriting processes; Strong computer skills; Good analytical problem solving skills; Sound arithmetic skills; Excellent communication and interpersonal skills; Demonstrated ability to multitask and takes initiative to manage priorities effectively; Good customer relation skills; Flexible, positive and collaborative team member.

Question: What is "underwriting" in the short sale process? I put an offer on a short sale home. The sellers have submitted their proof of hardship and everything on their part. I was informed by my real estate agent that it has now moved to "underwriting." What is that in real estate, and where is that in the short sale process?

Answer: I would imagine that is where someone with the sellers lender is going to review your offer in light of the sellers circumstances to determine whether to accept, make a counter offer or reject your offer.

Question: In the mortgage business what is underwriting? In the mortgage business what is underwriting? Oh and How long might it take for this process?

Answer: An underwriter is who determines if you get the loan or not. If you don't get an automated approval, the file goes to an actual person. My company has a 48 hour guarantee but it is usually much less.

Question: What is automated mortgage underwriting ? When is it done? Is automated underwriting started when I first apply for the loan? Do you know of anyone who has been denied during underwriting. My credit already has been check, submitted all paper work and now I am in underwriting.

Answer: I haven't heard of an automated underwriter before but traditionally, underwriting won't begin until you've put an offer on a home and completed inspection successfully - essentially when you are under contract. You can't be underwritten without an appraisal done by the bank on the home you plan to purchase. If you haven't already, you'll need to provide paystubs (they may ask for more recent ones if it's been a while since you originally were pre-approved) and tax returns. The bank will confirm employment status and may re-check your credit to confirm nothing now shows as negative. This process can take 2-4 weeks.

Question: Pre approved for home loan I am to close soon loan officer says it looks good but has togo to underwriting? I was pre approved for a home loan sent in all info W2 stubs etc loan officer says it looks pretty good but need to be sent to underwriting. I am so afraid I can't stop think of it.

Answer: Stop worrying. The loan officer has lots of experience and would have told you if there were a problem. The bank is in the business of making loans so why would you be turned down?? The worst that could happen is that you will be approved with stipulations. If you have any collection accounts you may have to pay them off or close some line of credit that you are not using. They may change the terms of the loan slightly etc.

Question: How long does underwriting process take with FHA loan? I submitted all my info to the lender on April 2nd. I recieved confirmation from the processor that she sent it to underwriting on April 9th. I set my closing for April 30th.. Now since it is now with the underwriter, how long will it take for me to get a answer back about my loan.? my lender requested additional info from me prior to sending it to underwriter, hoping that would speed up the process . Whats the normal wait time ?

Answer: Yes, the answer to this really does fluctuate depending on the overall volume of loans. Really it takes an underwriter approximately 2 hours to actually work on your file (all files vary depending on the specifics), but the delay is that they are working on a huge stack of files before they get to yours. In times like this when rates are low, lenders can easily get overwhelmed. Suddenly they get in hundreds of loan packages and cannot increase staffing quickly enough to keep up. It is a good idea to work with your Broker/Lender/Account Executive to get as accurate and realistic idea of turn times as possible.