When you buy or refinance a home with Warp Speed Mortgage, your loan application will enter a unique loan process, called our Automated Underwriting System, or AUS, for a quick and fast determination of approval. From there it will be reviewed by the Underwriting team. Underwriting will review your application in more detail to determine if any additional documentation is needed to move forward. It will then move into the Processing milestone, where your Client Manager will work with you to help satisfy the conditions or fulfill those additional documents that may be needed for final approval. Let’s explore this stage of the home financing process a bit further below.
The Purpose of Processing
The Processing milestone in the home financing process is a critical stage in which Warp Speed Mortgage will review and verify the information you provided with your application to determine if you appear to be financially prepared to take on new debt. Your Client Manager oversees your loan at this point and their goal is to present a completed and organized loan file that supports your qualifications for your specific loan program.
What are Conditions?
“Conditions” is mortgage industry jargon that refers to the additional documents and information that is needed to approve your loan application for your specific loan program. Some examples of conditions are:
- Proof of mortgage insurance or other type of insurance
- Gift letters
- Letter of explanation
- Updated bank statements
Your Client Manager will work with you to help satisfy the conditions for your loan, but they rely on you to obtain the needed documents and send them over in a timely manner. If you’re looking to complete your mortgage within a given timeframe, it’s critical that you complete this step in the process as quickly as possible – any delay here could push your closing date back.
Appraisal & Home Inspection
The home appraisal and inspection usually take place during the Processing milestone.
- An appraisal is when an appraiser visits the property being sold or refinanced to determine the property’s fair market value. The appraiser will look at the state of the property along with its size, features, and location and compare it to other homes in the area to determine the value of the home.
- A home inspection is when an inspector comes on site to evaluate the current condition of the home. They will look at all aspects of the home from the foundation to the roof to the interior plumbing and electrical components.
The Next Milestone: Final Underwriting
Once you have satisfied all conditions on your loan, it will then move into the Final Underwriting milestone where your application will be reviewed one last time and the underwriter will make a decision on whether to approve or deny the loan. If everything on your application looks good to go, you will be issued a conditional approval!
Each milestone in the mortgage process serves a specific purpose to ensure you are ready to take on additional debt. If you’re ready to begin your home financing journey, get started today!
