Mortgage Programs

Underwriting

Understanding Mortgage Underwriting

The Misunderstood Underwriter

Mortgage Underwriters are some of the most misunderstood people involved in the mortgage process. They have an extremely difficult job. On one hand they have an obligation to their investors who they are underwriting the loans to be sold to. On the other you have the customer. This could be a consumer like you or it could be a mortgage broker. They have to walk a tight line between keeping their customers happy yet also they have to follow complicated guidelines and processes.

Things they have to put up with

They here all the time from brokers to just let this or that slide. They have taken an oath to do their best to not only prevent fraud but help the lender be profitable. They are not in the business of giving away money like some would like to believe.

What they actually do

An underwriters job is to take a complete loan file and make sure that it conforms to an investor or company guideline. They are in charge of verifying that everything included in a loan not only conforms to their standards but is valid and accurate. They are the final line of defense to prevent fraud. They are the final say as to whether or not you will get your mortgage or not. They take all the papers and documents that you had to get and check them off. If everything looks good the underwriter gives the closing department or broker the elusive "Clear to Close".

Clear to Close

Once your loan officer gets this it is time to close and all that needs to be done now is set a date and sign all the necessary closing documents.