Underwriting
Author: Terri Ewing
Published: July 29, 2008
Underwriting Defined
Underwriting is taking all the financial information for a borrower and deciding if they are approved for a mortgage. It used to be a human being poured over all the information submitted by an originator and decided if a mortgage was approved and with what conditions.
However in today’s mortgage world, there is a computer in addition to the human being. Different mortgages have different computer underwriting systems but all get run through for an approval. Once the computer says the mortgage is approved, it then goes to the human being underwriter. They make sure all the documents the computer asked for are in the file and are within the guidelines. When the human being underwriter gives you the final thumbs up, then you have made it through underwriting.
For most originators underwriting is part of the pre-approval or pre-qualification process (or at least it should be). Your originator should run you through the underwriting computer right from the start to make sure you are approved. There is no reason to wait.
Author: Terri Ewing
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