Qualifying
Underwriting
The lender's process of verifying your income, assets, credit, and the property to decide whether to approve your loan and on what terms.
What does underwriting mean?
Underwriting is where a lender decides whether your loan is a risk worth taking. An underwriter verifies income and employment, confirms assets and the source of your down payment, reviews credit, and orders an appraisal to confirm the property's value. "Conditions" — requests for a pay stub, a letter of explanation, updated statements — are normal; responding fast keeps the closing on schedule. A fully underwritten pre-approval means this work is largely done before you shop, which is why it carries so much more weight with Michigan sellers than a prequalification.
Common questions
What happens during underwriting?
An underwriter verifies your income, assets, and credit, and orders an appraisal to confirm the property's value, then approves the loan or issues conditions.
What are underwriting conditions?
Follow-up requests — a pay stub, a letter of explanation, updated statements. Responding quickly keeps your Michigan closing on schedule.
How long does underwriting take?
Often a few days to a couple of weeks, depending on the lender and how fast you supply documents. A fully-underwritten pre-approval front-loads most of it.
Related terms