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The Underwriting Checklist Decoded: What 'Outstanding' Actually Means

47 line items. 4 responsible parties. Here's how to read the document that determines whether your deal closes.

What It Is

The Underwriting Checklist (UW Checklist) is the master tracking document for your loan. Every document required for closing is listed here, with its status (Received, Outstanding, N/A) and the party responsible for providing it. When everything says "Received," you close. When things say "Outstanding," you don't.

Our Freddie Mac refinance checklist had 47 line items across 6 categories. The first time you see one, it's overwhelming. By the end, you'll realize it's actually a roadmap—if you know how to read it.

The Four Parties

Every line item has a "Responsible Party" column. Know who's who:

CodePartyWhat They Do
LLenderThe originator (e.g., your lender/servicer). They prepare loan docs, order searches.
LCLender's CounselThe lender's law firm. They draft legal documents, review title.
BBorrowerYou. Entity docs, financials, questionnaires.
BCBorrower's CounselYour attorney (if you have one). Reviews loan docs on your behalf.
TCTitle CompanyHandles title insurance, escrow, closing.

If it says "L" or "LC," you're waiting on them. If it says "B" or "B/BC," you're the blocker.

The Three Statuses

StatusWhat It MeansYour Action
ReceivedDocument is in hand and acceptableNone. You're done.
OutstandingDocument is missing or incompleteProvide it (if B) or follow up (if L)
N/ANot applicable to your dealNone. Doesn't apply.

The goal is simple: turn every "Outstanding" into "Received" or "N/A." That's it.

The Six Categories

A typical Freddie Mac UW checklist is organized into these sections:

1. Lender Deliverables

Documents the lender prepares for you to sign or review.

  • Application materials
  • Commitment letter
  • Rate lock confirmation
  • Final loan documents
  • Signature pages

Your role: Review and sign when they send them. Don't sit on signature pages.

2. Borrower Organizational Documents

Everything about your entity structure.

  • Organizational chart
  • Articles of Organization
  • Operating Agreement (with all amendments)
  • Good Standing Certificate (must be dated within 30 days of closing)
  • EIN letter
  • Resolutions authorizing the loan

The Good Standing trap: This certificate expires 30 days after issuance. If your closing gets delayed, you'll need to order a new one. Budget $25-50 and 3-5 business days.

3. Key Principal / Guarantor Documents

Personal information for anyone signing a guarantee.

  • Notice address (where legal notices get sent)
  • Residence address
  • Email address
  • Personal Financial Statement

4. Public Record Searches

Background checks ordered by the lender. These are on them, not you.

  • UCC searches (liens on personal property)
  • Bankruptcy searches
  • Litigation searches
  • Judgment & Tax Lien searches

Must be dated within 30 days of closing. If closing slips, these get re-ordered.

5. Title Insurance

Handled by the title company and lender's counsel.

  • Loan title commitment
  • Schedule B exception documents (easements, restrictions)
  • Pro forma loan policy
  • Insured closing letter
  • Wire instructions

Title is often the longest pole in the tent. If there are title issues (old liens, boundary disputes), they can delay closing by weeks. Order title early.

6. Property-Related Materials

Physical and legal property documentation.

  • Survey (dated within 360 days of closing)
  • Zoning compliance evidence
  • Commercial leases (if applicable)
  • Tenant estoppels (for commercial tenants)
  • HAP contracts (for Section 8)
  • Regulatory agreements

The "Other Potential Legal Issues" Section

At the bottom of every UW checklist is a Yes/No table of deal-complicating factors:

IssueIf "Yes"
Access EasementNeed easement agreement reviewed
Shared AmenitiesNeed shared facilities agreement
Ground LeaseSignificant additional documentation
HAP ContractSection 8 documentation required
Tax AbatementAbatement agreement needed
LIHTCExtensive affordable housing docs
Subordinate FinancingIntercreditor agreement required

Ideally, this section is all "No." Each "Yes" adds complexity, documents, and time.

How to Use the Checklist

Week 1: Triage

Go through every line item. For each one:

  1. Do you have this document already? → Send it
  2. Do you need to create it? → Start now
  3. Is someone else responsible? → Note it and follow up
  4. Does it not apply? → Confirm with broker it's truly N/A

Week 2+: Daily Standups

Every day, review the "Outstanding" items. Ask yourself:

  • Which ones can I resolve today?
  • Which ones am I waiting on others for?
  • Have I followed up on items others owe me?

Pre-Submission: Final Sweep

Before rate lock, every "B" item should be "Received." If anything is still Outstanding, you're not ready.

The Items That Delay Deals

Based on our experience, these are the most common blockers:

ItemWhy It Gets StuckPrevention
Good Standing CertificateOrdered too early, expires before closingOrder 2-3 weeks before expected close
Operating Agreement AmendmentNeeds SAE provisions for FreddieDraft amendment early, get signatures
SurveyTakes 2-4 weeks to completeOrder immediately upon application
Insurance CertificateDoesn't meet lender requirementsGet lender's exact requirements first
Payoff LetterCurrent lender drags feetRequest early, follow up aggressively

The Comments Column

Don't ignore the "Comments" column. This is where the lender tells you exactly what's wrong:

  • "Need amendment for SAE provisions" — Your operating agreement is missing required language
  • "Lender will order" — They're handling it, but it takes time
  • "Required prior to rate lock" — This is blocking your rate lock, prioritize it
  • "Date within 30 days of closing" — Timing-sensitive, don't order too early

The UW checklist is not paperwork. It's your closing roadmap. Master it, and you control your timeline.

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