What Are the Duties of a Mortgage Underwriter?
A mortgage underwriter is someone, usually with a background in business administration and business, who evaluates the risks connected with a real estate loan. An underwriter calculates whether an applicant will be able to pay back a loan. During the evaluation process, the mortgage underwriter substantiates applications and ensures they meet lending guidelines. Mortgage underwriters are employed at financial institutions or mortgage companies. Income Verification A mortgage underwriter verifies an applicant’s income to make sure they have the capacity to pay back the loan. An underwriter evaluates current pay stubs and past tax returns. Also, an underwriter looks at a potential borrower’s debt-to-income ratio, which must land below a certain percentage set by the lending institution. Review Credit Score A mortgage underwriter reviews an applicant’s credit score. An underwriter looks at how an applicant handles paying their monthly bills. The underwriter examines whether bills have be
