Loan underwriting may sound mysterious, but chances are, you already experienced a similar (albeit simpler) process for your pre-approval letter. While pre-approval makes you competitive to sellers, it is not an official guarantee from your lender. Underwriting makes it official. It’s the final step for your lender before you close on the property.
Because underwriting is typically a hands-off part of loan approval, many home buyers and property investors don’t know what to expect from this financial process. There are steps you can take to ensure this goes as smoothly as possible because it’s important to know what’s happening behind the scenes. (Read more at https://www.biggerpockets.com/blog/what-is-underwriting)
