The Loan Process Step 4: Underwriting and Closing
Updated: Sep 29, 2021
The underwriter is responsible for the formal approval of your loan. They will evaluate your credit, your qualification and the property to determine adherence to guidelines.
Once reviewed, you will receive a conditional approval on your loan. This means your loan is approved, but we need additional documentation to issue the final approval or clear to close. Sometimes, this is information we need to add to the application such as the appraisal. Other times, it may be an additional item from you, such as an updated pay stub.
Either way, the conditional approval is a positive determination of the loan and means you are very close to closing on your transaction.
Once we have cleared any items on the conditional approval, your loan will be given clear to close status and moved to our closing department. At this time, your realtor will schedule your closing time with the title company.
Mark your calendars and get ready to sign!
The closing department is responsible for ordering the legal documents you will sign at closing from the attorneys who prepare them. They will also prepare your final closing disclosure, showing you the final amount due at closing. They will also send all the closing documents to the title company where your closing will take place.
Funds for closing need to be wired or brought in the form of a cashier’s check and made payable to the title company. You should also bring your Driver’s License and a second form of identification with you to closing.
*The prequalification may be based on unverified information the consumer voluntarily provides to LoanPeople, LLC. This is not a mortgage loan approval or a commitment to lend. A prequalification does not guarantee loan approval, nor is it an offer or commitment to make a loan to you on certain terms.