What to Expect During the Underwriting Stage

Your mortgage has been applied for and now it is currently with underwriters to assess, but what should you expect now that your case is with an underwriter to make the decision?

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The underwriting stage is the lenders way of assessing the risk of lending to you and them ensuring you are in a financial position to lend off them. The underwriter reviews your financial background, debts, income, and credit history as well as checking the property is lendable before making the final decision. There are a few stages to the underwriting process which are as follows:

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1. Verifying your documents - The underwriter will review the documents that they have asked for such as payslips, bank statements, ID. They will look through your bank statements to search for any unusual transactions like big deposits in or out and consistent payments to people and they are allowed to ask multiple questions about transactions that they have found.

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2.Credit Checks- The lender will do their own credit checks and anything that flags up that has not already been declared will be questioned and taking into affordability so it is important to be honest with your mortgage broker about any credit you have.

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3.Valuation - The lender will do some type of valuation on the property. Sometimes this is a physical valuation where they will visit the property or sometimes it can be what is known as a Desktop Valuation where it is done online or an AVM which is system generated.

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These are only a few stages in the underwriting process and each lender has their own timescales.