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Steps of Underwriting A Loan

Steps of Underwriting A Loan. By: Eric Larson. What is underwriting, and what do they do?. According to Investorwords.com, underwriting is the process by which a lender decides whether a potential creditor is credit worthy and should receive a loan.

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Steps of Underwriting A Loan

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  1. Steps ofUnderwritingALoan By: Eric Larson

  2. What is underwriting, and what do they do? According to Investorwords.com, underwriting is the process by which a lender decides whether a potential creditor is credit worthy and should receive a loan. Realtor.com says they perceive risk and weigh the strengths and weaknesses of the different loan applications.

  3. Gathering Data 1 – Pulling credit 2 – What is the purpose of the loan? 3 – Gathering employment/income info

  4. Analyze Data Analyze credit Verify income Analyze capacity to repay Analyze the loan structure

  5. Rendering Decision Weigh the risks vs. Strengths 6 “C”s -Taylor Sanderson

  6. Conclusion Underwriting is never black or white. It takes into account a lot of different information that helps to make the decision best for the institution as well as the borrower.

  7. "Underwriting." InvestorWords Biggest, Best Investing Glossary. InvestorWords. Web. 29 Oct 2013. <http://www.investorwords.com/5136/underwriting.html>.Realtor.com Pierce, Emmet. "Realtor.com." What's Underwriting and How Does it Work?. N.p.. Web. 29 Oct 2013. <http://www.realtor.com/home-finance/homebuyer-information/whats-underwriting-and-how-does-it-work.asp&xgt;. Sanderson, Taylor. Personal Interview. 09 Jan 2013.

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