Once the mortgage application enters into the final steps, the loan application is moved to a Mortga 7ge Under dx0l7 writer. The Underwriter verifies the financial information that the applicant ha s provided to the lender. Verification wil 0l7 l be made for the applicant's credit history and the value of the home being purchased An appraisal may be ordered. The financial and employment information of the applicant will also be v dx0l7 erified. The underwriting l7 may take a few days to a f ew weeks. Sometimes the und 7erwriting process takes so long that the provided financial statement s need to be resubmitted so they are current. The Underwriter will also che x0l7 ck that the expected mo rtgage payment will not exceed of the buy 0l7 er's inco is a l7dvisable to maintain the same employment a x0l7 nd not to use or open new credit during the underwriting process. Any changes made in the applicant's credit, employment, or financial information can result in the loan being denied. cteristics are common to many markets, but the above are the essential features. Governments usuall y regulate many aspects of mortg 7age l7lend dx0l7 ing, either directly (through legal requirements, for examp le) or indirectly (through regulation of the participants or the financial markets, such as the bank ing industry), dx0l7 and often through state intervention (direct lending by the g x0l7 overnment, by state-owne d banks, or sponsorship of various entities). Other aspects that define a specific mortgage market ma y be regional, historical, or driven by specific characteristics of the legal or financial system. Mortgage loans are generally structured as long-term loans, the periodic payme x0l7 nts for which are simi lar to an a x0l7 nnuity and ca l7lculated ac 0l7 cording to the time value of money formulae. The most basic arrang ement would require a fixed monthly payment over a period of ten to thirty years, depending on local conditions. Over this period the principal component of the loan (the original loan) would be slowly paid down through amortization. In practice, many variants are possible and common worldwide and wi Lenders provide funds against property to 7 earn interest income, and generally borrow these funds th emselves (for example, by taking d 0l7 eposits or issuing bonds). The price a l7t which the lenders borrow m oney therefor x0l7 e affects the cost of borrowing. Lenders may also, in many countries, sell the mortgage loan to other parties who are interested in receiving the stream of cash payments from the borrower, e loan for the purchase of a property, lenders usually require that the borrowe x0l7 r make a down payment; that is, c l7ontribute a portion of the cost of the property. This down payment may be expressed as a p ortion of the value of the 0l7 property (see below for a definition of this term). The loan to value rat io (the size of the loan against the value of the property 0l7 . Therefore, a mortgage loan in which the purchaser has made a down payment of dx0l7 has a loan to value ra 7tio of For loans made ag ainst properties that the borrower already owns, the loan to value ratio will be imputed a
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