What is Underwriting?




Mortgage underwriting is the process used to determine if a borrower meets the minimum guidelines for a particular loan program. Underwriters evaluate a borrower's current financial obligations, past credit history and current income.  An Underwriter evaluates a potential borrower's economic and credit situation to see if that situation meets the minimum guidelines set forth in the loan program's "underwriting guidelines."

Underwriters evaluate the "3 C’s" for each mortgage application: Credit, Capacity, and Collateral. 

The underwriting process can be a difficult process for some Consumers.  Common sense is not the standard used and that can be frustrating for some Consumers.  Stay in contact with your Loan Originator during the process and be sure to provide any requested documents as quickly as possible.