{"id":3832,"date":"2024-09-23T15:31:52","date_gmt":"2024-09-23T20:31:52","guid":{"rendered":"https:\/\/tomo.com\/blog\/?p=3832"},"modified":"2025-02-10T13:10:42","modified_gmt":"2025-02-10T18:10:42","slug":"how-long-does-mortgage-underwriting-take","status":"publish","type":"post","link":"https:\/\/tomo.com\/blog\/how-long-does-mortgage-underwriting-take\/","title":{"rendered":"What happens after you submit your mortgage application"},"content":{"rendered":"

Once you submit your application it goes to underwriting<\/a>. Underwriting is about making sure the details of your loan, the property, and your financial situation align with and meet standards set by organizations like Fannie Mae<\/a>\u00a0and\u00a0Freddie Mac<\/a>. These organizations help keep the mortgage market stable by buying loans from lenders and backing mortgage securities.\u00a0<\/p>\n

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Now, the time underwriting takes can vary. For some “straightforward loans” (think: you’re buying a single family home with a conventional loan, have had the same job with a salary for 2 or more years, good credit, no major debt, etc.), underwriting can be done in just a few days\u2014plus the time it takes for an independent appraisal. But for more complex situations, such as when you’re buying a condo or you don’t have a W2, it might take longer.<\/p>\n

For example, if you have other debt, we want to figure out exactly where it\u2019s coming from and whether it\u2019s a good or bad signal. Maybe you took out a loan to invest in expanding your business. We want to look at your overall financial picture to get you the best terms possible.<\/p>\n

How Tomo Mortgage does underwriting<\/h3>\n

The traditional underwriting process can take 30+ days and have a lot of hiccups along the way. That’s because other lenders run things in a linear, step-by-step fashion. If there\u2019s an issue with one part of your application (like your employer not responding to a verification request), the entire process grinds to a halt until that one issue is resolved. Your application goes back into the queue, and the cycle can repeat with every new issue.<\/p>\n

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Here\u2019s where we\u2019re different: Tomo Mortgage uses a \u201cconcurrent\u201d underwriting process. Instead of tackling one thing at a time, we check multiple \u201cconditions\u201d all at once. You might have a lot of things to do all at once, but that’s on purpose. If something needs to be resolved by you, we send it over immediately while we continue working on the rest of your application. This way, we can keep the process moving smoothly and avoid endless back-and-forth. It\u2019s faster, more predictable, and a big reason why we close on time, 98% of the time<\/a>, while the industry standard for on-time close rate is only 40%.<\/p>\n

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What does an underwriter look for in a loan application<\/h3>\n

Underwriting is when your lender checks all the boxes on a loan application\u2014and there are a LOT of boxes, each with their own little nuances and confirmation steps. And it\u2019s all very regulated\u2014lenders aren\u2019t just being fussy, they have to ask about this stuff.<\/p>\n

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To give you a clearer picture, here are some of the categories our underwriters dig into to protect homebuyers and ultimately give the best and safest loan possible:<\/p>\n