What Are The Duties Of An Underwriter On A Mortgage Loan?
By Eric GoodwillBehind the scenes look into the duties of an underwriter on a mortgage loan.
Upon completion of your mortgage loan application, it passes through the hands of your mortgage loan officer onto the desk of an underwriter. Mortgage loan underwriting in the most intense process for your loan. Your mortgage underwriter thoroughly examines every aspect of your application to decide whether or not to allocate your requested loan.
Underwriter Duties
Your underwriter rigorously reviews all of your documentation to determine if you are a lending risk. Your employment history, banking statements, income, debt, rental or mortgage history are all analyzed. If your underwriter finds any discrepancies that appear problematic, she will request more information.
Underwriting determines whether you are qualified for the specific mortgage loan requested. The underwriter reviews your credit history over the past two years. She looks at your credit accounts to see if you have any delinquent payments. Your credit score also plays a role in the underwriting process because most loans have specific credit score requirements.
Income
Your underwriter also looks at your two year income history. She wants to see consistency in pay, job status, and employments gaps for no more than one month. If you have any inconsistencies in your employment history, it is important to explain them on your loan application.
Rental or Mortgage History
Like your credit history, your rental or mortgage history also play a key role when determining trustworthiness. Your underwriter wants to see that you have paid your rent or mortgage on time and in full.
Tips
It is imperative that you submit all documentation correctly upon completing your loan application package. The more complete your file, the easier it is to get your loan through underwriting. If you are missing documentation, or have issues that raise red flag in your loan without explanation, the underwriter will put your loan package at the bottom of the pile and work through other loans.
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