How applications and Underwiters Work

Newbiejono

When a credit check is complete at AIP stage, what happens next ?

Do underwriters look at a detailed credit report, or has the credit report been accepted.

YHM

High street AiP outcomes usually come on the back of an automated computerised decision.

Which lender are you referring to?

Newbiejono

Nationwide. I have an AIP, just wondering what next stages are? does underwriter look at credit report in more detail

YHM

Didn't you ask the same question a day or two ago. Something to be worried about?

An underwriter will assess the full application once its submitted and will manually review the content of your credit report to ensure that the automated decision stacks up with their policy / criteria

Fisa002

OP why don!!!8217;t you join us in awaiting mortgage decision forum.

And regarding the repeat question/ post NW will do hard and soft searches on your credit files. If there!!!8217;s anything in them they usually will pick it up and assess your risk thereafter.

Thrugelmir

Newbiejono wrote: »

Nationwide. I have an AIP, just wondering what next stages are? does underwriter look at credit report in more detail

Highly likely the underwriting team will look a lot more closely when you submitt the full application.

FTBScotland

They'll do a full (hard) credit check when you submit your full mortgage application. If it's a human underwriter they'll go through your payslips, bank statements etc as well as your credit reports. It's terrifying but has to be done unfortunately. Do you have a broker? If not then I'd recommend one, they can review your particular situation and advise accordingly. They can also recommend lenders that may be a bit more sympathetic to your circumstances. Good luck!

Fiesto88

Depends on many things and depends on the lender as they all work in different ways.

Some will do the Underwriting at the point of AIP then, if they give the go ahead, have a verification team confirm all the income/credit commitments from your documents before issuing an offer. This is an !!!8220;approval subject to verification!!!8221; model of working and is good in that cases being declined are knocked on the head quickly. If the verification stage finds the income was lower or expenditure higher than quoted, it!!!8217;ll go back to underwriting for further review.

Some will have a verification team confirm everything from your documents after AIP then pass to Underwriting for the final assessment before offer. The disadvantage here being that if the Broker doesn!!!8217;t submit all the required documents, you can have a week of chasing and back and forth to satisfy the verification stage only to then be declined in five seconds flat when the application finally passes to Underwriting (unlikely, but it does happen).

Some lenders will automate the majority of the Underwriting and verification using data models - in this case, many applications will be approved and offered without a human even looking at anything. Only the borderline cases will need a manual underwrite.

There are still some lenders that work on a case-handler system. For these, if your AIP passes, one person will check your documents, verify everything and complete the Underwriting assessment. They!!!8217;d possibly even deal with the valuation report too.

There!!!8217;s not really any set in stone way of it happening so best not to fret.

Newbiejono

Thanks for the very detailed answer. I like to understand process. I have gone with nationwide, any ideas of their model

Fisa002

Yes it!!!8217;s on their website

https://www.nationwide.co.uk/guides/buying-and-owning-a-property/first-time-buyers/applying-for-a-mortgage