Ask The Underwriter

The underwriter reviews the loan file. They do this by evaluating four levels of Risk:

1.Character    (credit)- Credit report or alternative credit (utilities, insurance, car payment, rental history)

2.Capacity     (income)- Verified Income or Stated

3.Capital        (assets)- Checking, Savings, 401k, etc..

4.Collateral    (property)- Subject property

Brief Steps in the mortgage process:

1. The borrower looks for a loan to purchase or refinance
2. They talk to a bank/mortgage broker or Credit Union
3. The loan Originator from the bank/mortgage broker or Credit Union (aka loan officer or loan consultant) collects the the credit, income, asset info and (appraisal) and submits it to the Loan Processor
4. The Processor prepares the file for underwriting by orders title, appraisal, hazard insurance, etc..
5. The Underwriter takes the information everyone has collected and reviews it against the guidelines for the program they have selected using the for 4 risk factors above.
6. If the Underwriter is okay with all the documentation they will give an approval to close or an approval with conditions (the Processor generally clears these conditions)