The decision-maker…the underwriter

The mortgage underwriter understands the mortgage loan qualification, approval, and pre-approval. This person approves or declines the borrower for a mortgage by reviewing documents to see if they borrower meets the bank’s/lender’s qualifications. If the mortgage application fails to meet the qualification level, the mortgage underwriter determines the best mortgage loan options for the borrower-sometimes referred to as a “counter-offer.”

How the mortgage underwriter looks at the loan is largely determined by what type of loan the borrower has applied for and if the loan is a purchase or a refinance. To qualify for the mortgage, the mortgage underwriter basically looks at the credit history, credit score, down payment, equity, income, assets, appraisal and possibly the outstanding loan. Underwriters also understand how to repair bad credit ratings, and increase the credit scores.

The credit score/history works to predict how well (the likelihood) the borrower pays off loan obligations. A high score is a positive indicator but does not always tell the whole story nor does it tell if the borrower will be approved for the mortgage.

The income and debt ratio helps the mortgage underwriter prove that the income is enough to cover the mortgage, and outstanding loan. To prove, the mortgage underwriter verifies all the different sources of income…


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