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Mortgage Underwriting
Definition
The process of evaluating a mortgage application and determining lending risk.
Explanation
During underwriting, lenders verify income, assets, employment, credit, and property value. An underwriter reviews all documentation and decides to approve, deny, or conditionally approve. Takes 3-5 business days.
Underwriters follow specific guidelines (Fannie Mae, FHA, etc.) and may require additional documentation before final approval.
Example
Underwriter verifies employment, reviews bank statements, checks credit, orders appraisal, and requests explanation for a recent inquiry before approving.