The loan officer said the mortgage was approved and she was waiting on the final okay from the underwriter.?

Question

What does this mean?? She said that the appraisal and title work had been ordered, and she would let me know once she heard from the underwriter. Does this mean that the house is mine or can I still not get the loan??

Answer 1

As loan officer of many years, I can tell you exactly what is going on. The first thing a loan officer will do is determine collectively which loan program fits your need best with the purchase of your new home (from the question, it seems your purchasing a new home and not refinancing). At that point, he/she must collect the necessary documents to get you qualified. I will assume you have already submitted to him/her the necessary items. The documents he/she requests are based on the requirements of the bank, under the loan program initially decided upon. In addition to those documents, the loan officer must submit the appraisal and title work you mentioned. The underwriter from the bank will then review all the documentation submitted by the loan officer. The underwriter in return will either deny the loan request as a result of not meeting the loan program requirements or approve the loan with a conditional approval. The conditional approval basically states that the initial documentation meets the loan requirements but still requires additional documents to finalize the approval. Generally, the additional requirements are items that the loan officer can obtain without your assistance but with your initial consent (ex. rental history or any mortgage payment history, employment history, escrow instructions, insurance payee clause, etc.,). Once all these items are submitted, then the loan officer must wait for the "final ok from the underwriter". Generally, most banks take 48-72 hours, from the time the loan officer submits the final documentation requested by the underwriter, to give the "final ok". Unfortunately, not until you get the "final ok", you still do not have a loan or the house. Anything can still happen during this process. The final ok is loan officer talk for "Final Approval". Once you get that response from the underwriter, you have a loan in place and are on your way to owning your home. At this point your loan officer will order the loan documents for you to sign. Hope this helps. Good luck!

Answer 2

It means the mortgage company thinks you will repay the mortgage and you will get the loan.

However, the mortgage company won't give you the mortgage until they are assured that you will have clear title to the place. The title company is researching the title to make sure you will have clear title, and once it is determined that you will have clear title, an insurance company will issue a title insurance policy that will pay in the event someone sues and wins based on the fact that you indeed, DO NOT have clear title.

The underwriter is the person at the insurance company that approves the issuance of the policy and for how much.

** Note: This is a general discussion of the subject matter of your question and not legal advice. Local laws or your particular situation may change the general rules. For a specific answer to your question you should consult legal counsel with whom you can discuss all the facts of your case. **

Answer 3

Final approval of your loan comes from the lender's underwriting department. Until you actually close the loan, it is subject to withdrawal, even if it has passed underwriting.

As a caution to you, do NOT make any purchases of any amount on a credit card, do not sign an auto lease, or anything similar which might show up on your credit report. Underwriters generally make last minute checks of employment verification and your credit report to insure that nothing substantial has occurred since they first checked the report.

I've seen loans withdrawn on the scheduled date of closing because the borrower did something stupid like this.

Answer 4

Waiting For Mortgage Approval

Answer 5

It means your loan officer is speaking "Double Speak".

Your loan is not "approved" until the underwriter says it is approved. What you have is an "Approved Eligible" from automated underwriting (computer) which means little to nothing until an underwriter reviews. This approval is based on the information input from the loan officer or the processor. If the information is correct, you have a loan; if not; "garbage in...garbage out".

Answer 6

She means that the loan has been approved, but all mortgage loans are subject, among other things, to an Appraisal Of Value that is satisfactory for the Amount of the loan to be granted, and a Title Search showing that the seller can pass a clear title to you on the property. These items seldom become a problem, but the granting of the loan is dependant on them.

Answer 7

Underwriter may find title issues that need resolution, defects in the chain of title, unpaid liens or other matters.

YOu probably have the loan; the underwriter is determining if the house can be purchased with an insurable title.

Answer 8

the underwriter might come back with more demands ( and most likely they will)
the loan is never yours until you got the keys in your hands
i have seen deals fall apart at closings so keep in mind that its never over until you get the keys
edited to add
i seem to be on a different page then the other posters so let me list some things i think the underwriter might come back demanding
if you rented before 24 months of proof
two years of tax returns
any blemish on credit report paying off what is owed and a letter explaining blemish
etc
loan officer for ten years
and underwriters are the bane of my life

Answer 9

That's a good question

Answer 10

I was wondering much the same question