Definition: The term "when mortgage application goes to underwriter" refers to a specific stage or point in the process where the borrower's financial statements are reviewed by an underwriting officer before the loan approval is granted. During this phase, the underwriting team evaluates the borrower’s creditworthiness and their ability to repay the loan. The underwriting officer looks at various factors such as income, employment status, previous debts, and other non-critical information that may impact the borrower's ability to pay back the loan. This process ensures that borrowers are qualified for a mortgage loan based on the lender’s criteria. Once the underwriter is satisfied with the borrower's creditworthiness and financial statements, they will forward the loan application to the lender's finance department, who will review it in detail before making the final decision. The finance department then communicates their approval or denial to the lender, which can vary from lender to lender based on factors such as credit score, income history, and other relevant information. The term "when mortgage application goes to underwriter" is crucial for ensuring that borrowers are eligible for a mortgage loan before the funds are released to them. Without proper review and approval by an underwriting officer, the process can be delayed or even reversed if the lender decides not to approve the loan.

when mortgage application goes to underwriter