What Is a Loan Underwriter?
Loan underwriters are individuals or businesses that evaluate and ultimately approve or reject a loan request submitted by an applicant. As part of the process, the loan underwriter verifies the data provided by the potential debtor, including employment information, references, and other data requested. Normally, the loan underwriting also involves running credit checks on the applicant. Once the underwriter is satisfied that the applicant is a worthy credit risk, the loan is granted. Commercial loan underwriting takes place with many types of loans. The exact process the underwriting process takes will vary based on factors such as the nature of the loan and current regulations that apply in the jurisdiction where the transaction is taking place. In any situation, the purpose of the loan underwriter is to determine if the amount of risk associated with a client is low enough to grant the loan. Some underwriters will only consider clients with a high credit rating and stable employmen
