As first-time homebuyers navigate the mortgage process, there is a lot to learn.

All you want to do as a potential homeowner is ask the bank for a mortgage, get the stamp of approval, and receive the keys to your home.  

But what is underwriting? And where does it fit into the process of homeownership?

Underwriting Explained

Underwriting is the process of verifying the accuracy of the supporting documentation provided by potential homeowners.


To determine if a potential homeowner is able to take on the financial responsibility of homeownership, they have to go through the underwriting review process.


A mortgage broker, or bank representative, will gather background information from the potential homeowner including:


  • a letter of employment
  • verification of income (usually in the form of a Notice of Assessment)
  • your debt service calculations
  • document confirming your down payment
  • credit bureau reports-purchase contract for the home you are wanting to purchase


Photo Credit: Cytonn Photography

In some cases, the underwriter requests additional documentation from the potential homeowner. Items like a bank statement showing a portion of a credit card was paid off are common requests.

Once the underwriter has everything, the review process takes approximately 72 hours before the potential homeowner receives an approval for the mortgage.

Why do we need underwriting?

The underwriter works on behalf of the lender behind-the-scenes. The lender relies on the underwriter to thoroughly review a potential homeowner’s information and determines if they are deemed safe to lend hundreds of thousands of dollars to.


If a homebuyer’s credit history isn’t exactly what the underwriter is looking for, the underwriter may deny the mortgage with that particular lender.


While there are other private lenders that may take on the potential homeowner, this option will likely include a higher interest rate and may end up being more costly for the individual or family in the long run.

Alternative Solutions

Our Bridge to Own™ program can set a homebuyer onto the path of homeownership, even without an ideal credit history.

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As everyday people we want to help everyone be their best financial selves.

Our team wants to learn about a potential homeowner’s financial story including the challenges that they had to face that got them to this point in their financial journey.  


We understand that everyday people go through financial hardship brought on by life’s circumstances such as divorce, job loss or even a global pandemic and want to give everyone the opportunity to move forward and get back on their feet.


Our homeownership program can get a potential homeowner into a brand-new turnkey home. We cover additional expenses such as: closing costs, major appliances and landscaping that are not usually provided with rent-to-own programs.

With a focus on your entire financial journey, we also provide complimentary credit education and coaching to help you navigate the path of homeownership and your other financial obligations.

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