What is an underwriter?

An underwriter is basically responsible for deciding whether you will get a green or red light on your mortgage application. If you ask your real estate agent, ‘What is an underwriter?’, they will probably tell you that the underwriter is a financial wiz, and they are not wrong.

Underwriters are vital in the process of securing the homebuyer a loan, and they typically work for the lender. Their job is to analyze a borrower’s financial health in relation to the size of the mortgage to assess the risk of granting the homebuyer a mortgage. More specifically, they will dive into your credit report and could pursue an appraisal of the home’s value. They will check your income and examine your debt in relation to how much you are putting down and your level of debt. 

The underwriting process could involve some back and forth between the lender and the borrower, so be willing to provide any documentation that is requested along the way as it can help your cause. 

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