Mortgage Loan Underwriting 101
What Happens After You Apply? Understanding Mortgage Underwriting and Your Closing Timeline
Once you've submitted your mortgage application and gathered all your documents, what happens next? For many buyers, this part of the process can feel like a mystery. In this post, we’ll walk you through the underwriting process, what conditions mean, and how long it typically takes to get from application to closing.
What Is Mortgage Underwriting?
Underwriting is the process lenders use to verify your income, assets, debts, and property details before issuing final approval.
An underwriter will review all documentation to ensure the loan meets guidelines for the loan program (Conventional, FHA, VA, etc.).
What Are Loan Conditions?
A conditional approval means the loan is nearly approved, but certain items still need to be addressed.
Common Conditions Include:
- Letter of explanation for large bank deposits
- Updated paystubs or bank statements
- Final homeowner’s insurance binder
- Verification of employment (VOE)
- Conditions may be Prior to Docs (PTD) or Prior to Funding (PTF).
How Long Does Underwriting Take?
Initial Underwriting: 1–3 business days
Clearing Conditions: Varies based on how quickly documents are returned
Final Approval: Typically 1–2 days after all conditions are cleared
Timeline from Application to Closing (on average):
Application Submitted: Day 1
Loan Disclosures & Intent to Proceed: Day 1–2
Document Collection & Submission to Underwriting: Day 2–5
Initial Underwriting Review: Day 5–8
Conditions Returned & Cleared: Day 9–14
Final Approval & Closing Disclosure: Day 14–18
Loan Docs Out & Closing: Day 20–30
Tips to Stay on Track:
- Respond quickly to any documentation requests.
- Keep financial activity stable during the process.
- Ask your loan officer for regular updates.
While underwriting can sound intimidating, it’s simply a step to make sure everything checks out. With clear communication and quick action, you’ll be on your way to closing day with confidence. The best way to set yourself up for success is to work with an experienced, knowledgeable, mortgage professional.
Speak to one of Cohen Mortgage's licensed loan officers today: