Underwriting

Underwriting is the stage where the lender verifies everything and makes the actual lending decision. An underwriter (often an automated system first, then a human) reviews your income and employment, credit history, assets, debt-to-income ratio, and the property's appraisal and title work.

Underwriting usually ends in one of three outcomes: approved, approved with conditions (by far the most common — the underwriter asks for specific documents, like an explanation letter for a deposit), or denied. Once every condition is cleared, the loan reaches clear to close and closing can be scheduled.

The classic underwriting lens is the "three C's": capacity (can you afford the PITI payment), credit (do you repay on time), and collateral (is the home worth the loan). A pre-approval is a preliminary pass over the first two; full underwriting adds the third.

Practical advice while a loan is in underwriting: don't change jobs, don't open new credit, and don't move large sums between accounts — any of these can reopen the review days before closing.