From Time:



Mortgage underwriting is a crucial step in the homebuying process where lenders assess the risk of financing a home purchase. Underwriters review financial documents, assess the property’s value, and determine loan eligibility. The process typically takes about a week, but can take longer depending on the complexity of the application. Common documents requested include pay stubs, tax forms, bank statements, and identification documents. Lenders consider factors like income, credit history, debt, and assets when reviewing applications. The appraisal and title search also play a significant role in the underwriting process. The outcome of underwriting can be approval, conditional approval, denial, or suspension, with final approval resulting in being “clear to close.” Fees for underwriting are considered part of closing costs and typically range from $500 to $1,000 or a percentage of the loan amount. This process is crucial in determining whether or not a mortgage application will be approved.



Original: What Is Mortgage Underwriting? | Money