A mortgage loan underwriter is a professional who determines whether a loan application should be approved after considering that important elements such as the type of loan and the loan applicant as well as the real estate in consideration are all in line with the lender's loan policy. An underwriter basically has the final say on whether a loan application should be thrown out or be granted.
The standard practice is that the loan applicant submits his or her application to the mortgage broker or loan officer who works hand in hand with other professionals such as the loan underwriter until the final stage of the loan. This means a prospective borrower normally has no personal business whatsoever with the underwriter.
There are so many elements that are put into perspective once a mortgage loan underwriter receives a loan application file. One of the most important things that are considered is the credit rating of the prospective borrower as well as his loan records, etc. this is used to assess whether the applicant has a habit of paying his debts and how quickly he does it.
Another important element that is considered is whether the prospective borrower has any problems with the law, whether he has the right to employment, whether he is gainfully employed and has a stable job, etc. The mortgage loan underwriter also assesses the property for which the loan is being sought for to determine whether the borrower will be getting value for his/her money.
The final factor that is considered by an underwriter is the amount of loan applied for and whether the lender can afford to part with that amount to the prospective borrower. If there is anything the underwriter is not clear about when assessing a particular loan file, he/she will ask for clarification and may even ask for additional documents to support an application if necessary.
Every lender has its own set of guidelines that are observed by its mortgage loan underwriter and this normally impacts on how long it takes for a particular loan application takes before its closed.
The standard practice is that the loan applicant submits his or her application to the mortgage broker or loan officer who works hand in hand with other professionals such as the loan underwriter until the final stage of the loan. This means a prospective borrower normally has no personal business whatsoever with the underwriter.
There are so many elements that are put into perspective once a mortgage loan underwriter receives a loan application file. One of the most important things that are considered is the credit rating of the prospective borrower as well as his loan records, etc. this is used to assess whether the applicant has a habit of paying his debts and how quickly he does it.
Another important element that is considered is whether the prospective borrower has any problems with the law, whether he has the right to employment, whether he is gainfully employed and has a stable job, etc. The mortgage loan underwriter also assesses the property for which the loan is being sought for to determine whether the borrower will be getting value for his/her money.
The final factor that is considered by an underwriter is the amount of loan applied for and whether the lender can afford to part with that amount to the prospective borrower. If there is anything the underwriter is not clear about when assessing a particular loan file, he/she will ask for clarification and may even ask for additional documents to support an application if necessary.
Every lender has its own set of guidelines that are observed by its mortgage loan underwriter and this normally impacts on how long it takes for a particular loan application takes before its closed.
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