So this week we're talking about, what does underwriting mean? Does underwriting mean that you actually go under something? No, absolutely not. There's nothing to go under, rather there's a process that you go through, but underwriting is a term that refers to the process of someone looking at all of your financial situation in order to give you the home loan or the mortgage that you're applying for.
So while the appraisal, which we've talked about before, verifies the value of the home you're buying, the underwriting process is a person specifically dedicated to looking at your financial picture. So they're looking at your pay stub, your taxes, any W2s, they're looking at any money that you've transferred in and out of your bank account to determine how much money they can lend to you and what sort of risk you might be to a lender if they take on your mortgage, and provide you that mortgage loan for your home. And so with underwriting, it is a process by which someone is looking at your financial situation to verify that the bank can actually provide you this money. Sort of like when you apply for a credit card, they have to verify your assets and know how much money you can pay back to the credit card that you might use each month based on your income.
So the same thing is happening with an underwriter. They're loaning you hundreds of thousands of dollars typically, and so for that reason, someone is taking a very careful look at all of your assets and your financial situation. Now, how long does underwriting take? Well, underwriting is very unique to each person, just like the mortgage loan process. Each person has different qualities and attributes that make things different for their loan, and therefore the underwriting process can take different amounts of time for each person. Typically, underwriting is the final step for the loan process before the loan documents get delivered to escrow for your closing. So an underwriter is the final person who signs off on you obtaining that home mortgage or that home loan.
So there you have it. Underwriting is not going under anything. In fact, it's going through something, if you had to say one way or the other. So underwriting is that process of verifying your financial picture to make sure you can afford that home that you are purchasing and the loan they are giving to you. If you have any questions about underwriting, the loan process, or real estate in general, we'd love to answer them. You can call, text, direct message or email us any time, and we hope that you'll subscribe to this YouTube channel. We love having you follow along, and we'd love to see your comments if you find this useful, and then pass this along to anyone else you might think might find it useful. Have a great week, we will see you next week.