Michael Isaacs

Branch Manager • Loan Originator

  • (614) 383-7341
  • About
  • Blog
  • Mortgage Info
    • First Time Home Buyer Tips
    • First Time Home Seller Tips
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage FAQ
    • Mortgage Glossary
  • Reviews
    • Read or Write Reviews
    • Additional Reviews
  • Contact

Understanding Automated Underwriting and How It Impacts the Mortgage Application Process

July 28, 2016 by Michael Isaacs

Understanding Automated Underwriting and How It Impacts the Mortgage Application ProcessWhether you’re embarking on the process of obtaining a mortgage for the first time or just preparing yourself for the advances in the industry, the implementation of automated underwriting in recent years has significantly changed the application process. From the time you’ll have to wait to the documentation that is required, here are some of the details on what you can expect when dealing with an automated underwriter.

Reduction In Document Requirements

In the past, most homebuyers submitting mortgage application documents were required to go into their backlogs to provide the paystubs for the previous 2 months pay, as well as W2’s for the last 2 years. Now, with automation, most homebuyers will only need to submit their most recent paystub in order to move along to the approval process.

The Time Line Is Shortened

Since the loan approval process previously had to go through an underwriter, there was a delay between when the documents could be reviewed and approved, and how long it would take for this information to be passed on to the homebuyer. However, since a Findings Report is automatically created from the applicable data during the automated process, the timeline homebuyers have to wait is shortened considerably.

Approval Rates Are Improved

Previously, approvals that were completed by an underwriter were held to a standard that was made up of a person’s financial health and credit report, so having one and not the other could lead to a declined application. Due to the fact that automated approval is based on the degree of the deciding factors, homebuyers who previously may have been turned away have a greater chance of approval.

A Useful Bargaining Tool

While most homebuyers have identified their ideal home before getting too involved in the application process, automated underwriting actually enables those who want to apply to get approval prior to deciding on a home. Instead of being an expenditure of time, this can actually be a good bargaining chip when it comes to putting in an offer on the right home.

With the advances in technology and the ever-shifting real estate market, there are many changes on the mortgage market that are important for future homebuyers to be aware of. Fortunately, there are many advantages to the automation of underwriting that can offer great benefits to those going through the application process. If you’re applying for a mortgage soon, you may want to contact one of our mortgage professionals for more information.

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Mortgage, Mortgage Approvals

Michael Isaacs

Contact Michael


CEO

NMLS #26591 • AZ License #BK-0904162
Licensed in: AZ, CA, CT, FL, IL, KS, KY, ME, MD, MO, NH, NJ, OH, PA, TN, VA.
Direct/Office: 614.383.7341
michael@gomortgage.com
4215 Worth Avenue, Suite 220, Columbus, OH 43219
RATE QUOTE →
GO Mortgage
Company NMLS #1018

How can I help?


0 / 180

Let’s Connect!

Keep Up to Date with the Latest Mortgage News!

Recent Articles

  • ITIN Loans: Are These Loans Right For You?
  • Why Your Kitchen Features Matter
  • What’s Ahead For Mortgage Rates This Week – February 6, 2023
  • 3 Tips To Consider When Buying A Home With An FHA Mortgage
  • S&P Case-Shiller Home Price Indices: Home Prices Fall In November
Equal Housing Lender
GO Mortgage, LLC, NMLS ID #1018
For licensing information, go to: www.nmlsconsumeraccess.org

Privacy Policy | Disclosure Information
The content on this website is written by Michael and reflects his opinion, and not the opinion of GO Mortgage.

Our Location


4215 Worth Ave
Columbus, OH 43219

Copyright © 2023 · Powered by MySMARTblog