Mortgage Underwriter Keeps Asking For More Documents

First of all, don’t panic! Waiting for a mortgage decision can be stressful, but just because your underwriter is asking for more documents doesn’t necessarily mean there’s a problem.

The underwriter’s job is to gather as much information about your financial situation as possible, ensuring the lender can confidently assess your ability to repay the loan. Providing the requested documents to your underwriter promptly will help avoid delays in the application process and ensure you receive your mortgage decision more quickly.

It’s normal for mortgage underwriters to request more documents. They are conducting due diligence to ensure that they are lending responsibly.

What exactly are they doing with all of my information?

Initially, the underwriter’s role involves basic fact-checking. They will review your credit file for any issues, such as late payments, and investigate them further. Additionally, they will examine your bank statements to ensure that your reported income and expenditure align with your actual transactions.

Underwriters will also analyse your bank statements to understand your financial habits and risk profile. They may look for patterns in your spending and potential red flags, such as frequent unaffordable gambling.

Why couldn’t they just ask for everything they needed to start with?

Ideally, your underwriter would provide you with a complete list of all required documents upfront, but life isn’t always that straightforward. Each person’s financial situation is unique, and as underwriters review your initial documentation, additional questions or issues may arise that require further clarification.

For example, suppose your recent payslips show an unusually high take-home pay due to a bonus. In that case, the underwriter may need documentation explaining the bonus details and how often it is paid.

Underwriters may also request further explanations for instances of bad credit or gaps in employment. Again, don’t panic—just be honest. Lenders don’t expect perfection; they simply want a clear picture of your financial situation.

Is there anything I can do to speed up the process?

Being responsive, honest, and providing as much information as possible will help. Applying for your mortgage through a specialist broker can also be beneficial, as they will have the experience to anticipate many of the underwriter’s likely questions and ensure you’re well-prepared with the necessary documentation.

The mortgage industry is highly regulated, and ensuring you can afford your mortgage protects both the lender and you. Keep communication open, and provide any requested information promptly and clearly. By doing so, you’ll help the process move along as swiftly and smoothly as possible.