Real Estate Term
Underwriting
The process a lender uses to assess the risk of providing a mortgage to a borrower.
What is Underwriting?
Underwriting is the process a lender uses to assess the risk of lending to you before approving a mortgage, verifying your income, credit, debts, and the property's value. The underwriter decides whether the loan meets the lender's criteria and may request additional documents. Successful underwriting turns a pre-approval into a firm mortgage commitment.
Frequently asked questions
Related terms
Mortgage Pre-ApprovalA lender's commitment to provide financing up to a specific amount, subject to conditions.MortgageA loan used to purchase real estate, with the property serving as collateral.Mortgage BrokerA professional who arranges mortgages between borrowers and lenders.Interest RateThe percentage charged by a lender for borrowing money, typically expressed as an annual rate.
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