The most stressful part of obtaining a mortgage is the mortgage underwriting. The appraisal process is a delay period which can easily build up stress.
Usually, the mortgage underwriter evaluates the borrower’s documents to check if they are creditworthy. This evaluation period, however stressful, is essential for the mortgage broker to make sure you would not default in the future. If there are issues with your financial history such as a not-so-perfect credit score, or an inability to provide vital documents, getting a mortgage can be a frustrating process.
The underwriting stage is also the point at which the underwriter (usually one person) looks at your pay stubs to check if they are too old or needs more income when matched against your tax returns. If the underwriter needs more information he will ask the processor, the processor will check for it in their files and if not found will ask the Loan Officer to get it from you.
It builds up frustration and delays which may affect the purpose of the loan and as a result, the loan may be rendered ineffective. In extreme cases, it leads to loan’s death— Low wage employees combined with the inefficient protocol is the culprit.
However, all hope is not lost. There are startups springing up to solve this challenge. Peer to peer companies like SoFi have the best shot at solving these problems, however, they don’t have the necessary capital to operate like secondary markets. Until then you will submit your pay stub 3 times, get questioned on your rental income write-offs and given the financial colonoscopy.
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This question was initially answered in Quora by our co-founder and mortgage ninja Kevin. View in Quora