Mortgage Question

Avatar for 2locachicas
iVillage Member
Registered: 05-14-2003
Mortgage Question
1
Fri, 04-28-2006 - 3:28pm

We are refinancing our house right now. Our appraisal came in a little low so the 20% equity we need to not owe PMI is a few hundred dollars below our principal. We are going to pay that & any accrued interest at closing(all of this should be less than our regular mortgage payment).

But they sent it back to underwriting. What goes on in underwriting? We won't be denied will we? Our credit is stellar so that is not a problem. this is just my ignorance on how these types of loans are handled.

Thanks!

Avatar for endomagazine
iVillage Member
Registered: 11-09-2004
Fri, 04-28-2006 - 3:56pm

Hello,


Underwriting is where they do the number crunching.


From wikipedia:


In Banking, Underwriting is the detailed credit analysis preceding the granting of a loan, based on credit information furnished by the borrower, such as employment history, salary, and financial statements; publicly available information, such as the borrower's credit history, which is detailed in a credit report; and the lender's evaluation of the borrower's credit needs and ability to pay.


It doesn't necessarily mean that you'll be denied, but when the numbers change a little, it has to go back to underwriting for the new information to be processed.


Sincerely,
Lindsey Schocke

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