What is underwriting?
Underwriting is a review of an applicant’s health to determine insurability. Coverage in GuideStone health plans is not effective until our underwriter approves the participant’s coverage. The underwriting process typically takes four to six weeks but could take longer during busier times of the year or if an application is incomplete. GuideStone recommends that applicants continue their prior insurance coverage until they receive a decision from our underwriter and GuideStone coverage is effective. Term life, medical and disability plans require underwriting. Dental and accident plans do not require underwriting.
Underwriting is the method that is utilized to evaluate the current eligibility of a customer to receive some type of financial product. The range of products include a number of financial devices such as insurance coverage, mortgages for home and business property, venture project financing, or a line of credit. In going through this process of evaluation, the financial entity will determine if the transaction has a good chance of ultimately yield a profit in return for the financial assistance.
Underwriting is the process by which the lender determines it’s risk for a particular loan and whether or not they are getting paid enough to take on that risk (interest rate). There are many sides to underwriting. You, your jobs, your income, your credit scores, your job stability, etc. Then there is the property. The assessment, the downpayment, the loan to value ratio, your debt ratios, etc. Usually they tell you why it failed underwriting. It could have been that the appraisal came in too low. It could be something they discovered in your credit file. It could be a bunch of different things, but I would have to know or it would bug me forever. Please ask someone. good luck!
Underwriting is the process a lender uses to determine if the risk of lending to a particular borrower under certain parameters is acceptable. Most of the risks and terms that underwriters consider fall under the three Cs of underwriting: credit, capacity and collateral. To help the underwriter assess the quality the loan, banks and lenders create guidelines and even computer modules that analyze the various aspects of the mortgage and provide recommendations regarding the risks involved. However, it is always up to the underwriter to make the final decision on whether to approve or decline a loan.
