Explain mortgage underwriting?

Question

Can someone explain to me the underwriting process? Our bank in which we were pre approved for a mortgage told us not to enter into a contract until the underwriting process is complete and we are approved. I guess I am confused on why we have to go through another approval process through an underwriter. Who is the underwriter, does he work for the bank? I thought the loan officer makes the decision. What is the underwriter looking for that the loan officer did not catch?

Answer 1

A pre approval is just a quick determination that the loan officer uses to give you a guide line on how much you can purchase a home for. I'm not sure why you have been put through underwriting without a contract. Mortgage underwriting is the process the loan company uses to qualify you for a loan once you have made an offer on a home- you will need to provide your lender with all documentation requested for their review. The purchase contract will have lender approval condition stated on it in and in the event you don't qualify then the contract is canceled and you will receive your deposit back. You need to ask your loan officer some serious questions as to why you have been placed into underwriting without a purchase contract.

  

Answer 2

Your loan officer is pre-approving you for the loan.He take all the info from you and submit those info to the underwriter in the bank. He verify all the information, make sure, that you meet loan requirments and  if those information are true and correct. I'm not talking about your personal info only. He need look into other stuff like appraisal report, title, your insurance coverage and such. After this you will get your final approval.