Wednesday, September 12, 2012

The Home Buying Process: Step 7

This is the seventh post of ten in a series about the home buying process.  The purpose of this series is to educate the reader on different steps in the process to ease any anxiety of the unknown.  Whether you are a first-time buyer or have purchased in the past, it is always advantageous to be up-to-date with the latest news and information to make your path to home ownership as smooth as possible.
Step #6:  Mortgage Application

Step #7:  Underwriting

The underwriting step is when the bank does a thorough evaluation of your financial situation to determine your eligibility for a loan.  Before granting you a loan, the bank does a credit analysis to see that you are indeed qualified to make the payments and that you are not a risky investment.

This step has become more difficult in the past few years.  Banks are establishing tougher requirements to eliminate risk of repeating the financial crisis that sent the market into a downward spiral.  These tougher requirements are making this time frustrating for buyers, sellers, agents, and everyone else involved in the process.  Often times, deal will move slowly through this time because of the thorough evaluations that are required of the underwriters.

The one thing that I'd like to communicate to buyers about this step is to be patient.  You may find yourself frustrated because you are getting a call every few days asking for a new document or signature.  Be certain that you ask questions if you are unsure of an instruction or situation so that you can provide the evidence necessary to get to the next step of the underwriting process.  It can be a stressful, tedious time, but just keep in the back of your mind that you are only weeks away from moving into your brand new home!

Take care,
Scott Morrison

Click here to search for a home for sale in Gahanna Ohio

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