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Step Four: Submitting to Underwriting

No open houses this weekend over Memorial Day to compete with your barbecues and landscaping plans! What’s your favorite thing to grill? I’ve been loving adding veggies to the grill — with a brush of olive oil, they make eating my veggies so much more fun, and tasty! Anyways, where was I? Oh, right — the mortgage process! Instead we’ll continue to explore the mortgage process:

With all the changes taking place in the mortgage industry, we asked our colleague Craig Tashjian of Fairway Independent Mortgage to share his expertise. This is the fourth in a series to demystify this key component of the home-buying process and share what you can do to increase your chances of a stress-free, successful transaction. Take it away, Craig!

To re-cap there are five key steps in a successful loan process. In step one the importance of a thorough and proper pre-approval application was discussed. Step two was preparing the full application and the additional paperwork needed at the time you find a property and sign an agreement to purchase. Step three sees all of your paperwork and application submitted to processing.

Step 4 of Understanding the Loan Process is submitting the loan to underwriting.

Once the appraisal on the property comes back the processor is required to order a “Fraud Guard” report. This comprehensive report reviews everything and everyone involved in the transaction to ensure that no party engaged in the sale has been involved in fraudulent activity in the past. This includes: the borrower and their background, the appraiser, attorney, realtors, and other professionals involved. The processor will also review the appraisal, the condo information (if a condo) and all documentation prior to submitting for full underwriting approval. At this time any one of these reports or documents may spur a request for additional documentation from the borrower. Take heart, you’re almost done!

Coming up is step 5, the final step — Underwriting approval.

Craig Tashjian is Vice President of Fairway Independent Mortgage in Needham. You can reach him at 617-417-2966 or craigt@fairwaymc.com.

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