How the Mortgage Underwriting Process Works

By Jason Starr

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Understanding the underwriting process is essential for anyone navigating the mortgage approval journey. In a recent interview, Jennifer McCall of Total Mortgage provided valuable insight into what underwriting involves, how it has evolved, and how automation is improving the experience for borrowers. The conversation aimed to clarify the role of the underwriter and explain why this step is so critical in the loan approval process.

What is underwriting? As Jennifer explained, underwriting is the review process used to determine whether a loan application meets the specific guidelines of a chosen loan program. While borrowers often work closely with their loan officer throughout the application, the underwriter ultimately decides if the loan will be approved.

The underwriter ensures the loan file aligns with all required criteria, while the loan officer’s role is to guide borrowers through the process and help them prepare the application for submission.

Evolving guidelines. Jennifer emphasized that underwriting guidelines are constantly changing. In her two decades of experience, she’s seen how the process has become more efficient by integrating automation. Most loan applications now go through an initial automated underwriting system before they reach a human underwriter. This first step helps identify potential issues early and speeds up the overall approval timeline.

Using Fannie Mae as an example, Jennifer explained that the organization pulls from a vast database of millions of loans to assess performance and risk. This data allows for more accurate guideline updates and a fairer process for borrowers. Automation helps ensure that loan decisions are informed by real market data rather than assumptions.

One-on-one guidance is key. Despite these advancements, Jennifer noted that one-on-one guidance remains essential. No two borrowers are the same, and selecting the right mortgage requires understanding a borrower’s specific goals, financial details, and potential challenges. A loan officer’s ability to identify and prepare for any underwriting hurdles is a key part of ensuring the process runs smoothly.

Jennifer also noted that even though much of the mortgage process is now online, having a real person to talk to still matters. The loan officer is there to answer questions, provide tailored options, and guide borrowers through each step.

For anyone looking to learn more about underwriting or the loan process, Jennifer McCall can be reached through her website at jenthelender.com or by email at jmccall@totalmortgage.com.

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