What Happens When My File Goes to Underwriting?

Here’s what happens when a home purchase contract goes to underwriting.

Today I’m joined by Zell Railey of Bank of England Mortgage. We’re here to discuss the underwriting process and how it affects homebuyers. Once you go under contract to buy a home, there is a flurry of activity for 10-15 days, then things go a little quiet as the contract goes to underwriting.

When Zell submits a file to underwriting, he does so after receiving all the necessary documents from the buyer. It’s not an instantaneous process. It can take a few days, and your file has to wait in line for review behind other contracts. 

While this is going on, there are several things that Zell is doing behind the scenes. For example, he orders the appraisal with a third-party company, then once it’s complete he has to wait for the report. The time the appraisal is ordered to the time the report is published can take up to 10 business days.

Underwriting is not an instantaneous process.

Next, title work is ordered through another third-party company. This is all the paperwork that determines who legally owns the property. They’ll go back 20 or 30 years to look at the home’s history and make sure there are no outstanding liens on the property. This can take another three or four days to complete.

The last part of the process is homeowners insurance. Zell asks buyers to shop around from a few different agencies, find a quote they like, and then he will reach out to the insurance agent to get the necessary paperwork to finish the underwriting process.

Even though it might not seem like it, there is a lot of important stuff going on behind the scenes during this “quiet time” in the transaction. If you have questions for Zell about this topic or anything else related to home financing, give him a call at (205) 777-1903.

If you have any other questions about buying or selling a home, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.