The Loan Approval Process
During the “processing” and/or “underwriting” period, your credit, assets, income and other determinants are checked and compiled. Your loan is either approved with conditions, approved without conditions or declined.
Conditions are further documentation or checks needed to finalize your loan before funds can be dispersed. Some borrowers become frustrated by conditions that surface at the end of a loan transaction and can’t understand why they are being raised so late. Final conditions are sometimes added for final approval. A capable lender will do their best to help you through the process. Try to remember that your lender is simply trying to meet conditions imposed by other sources.
Since most loans are sold and serviced by other parties, the lender must verify that the loan can be sold upon close. Not to worry, no other terms of your loan can be changed after you have signed your final loan documents. When all conditions are met, your loan documents are drawn up and forwarded to the place of settlement or closing, typically a title and/or escrow company.