Underwriting is the detailed assessment a lender carries out once you submit a full mortgage application. An underwriter reviews your financial information, employment status, credit history, existing debts and the property you intend to buy to decide whether the lender is prepared to offer you a mortgage and on what terms.
The underwriting process can be partly automated and partly manual. Many lenders use automated systems to perform initial checks, but more complex cases are referred to a human underwriter for a decision. The process typically takes between a few days and several weeks, depending on the lender and the complexity of your application.
During underwriting, the lender may ask for additional documents such as bank statements, payslips, or explanations of unusual transactions. Responding to these requests promptly helps avoid delays. The outcome of underwriting is either approval (leading to a mortgage offer), a request for further information, or a decline.
After you submit your mortgage application, the lender's underwriter notices a large cash deposit in your bank statement. They ask you to provide evidence of where the money came from as part of their anti-money-laundering checks. Once you supply the documentation, they approve the application.
Key Points
- Carried out after you submit a full mortgage application
- Assesses your finances, credit history and the property
- Can be automated, manual, or a combination of both
- You may be asked for additional documents during the process
- The outcome is a mortgage offer, a request for more information, or a decline