Definition
The process by which a lender evaluates a mortgage application to determine the risk of lending. Underwriters verify income, assets, credit history, employment, and the property appraisal. The underwriting process typically takes 2-4 weeks. Common outcomes are approved, approved with conditions, suspended (needing more documentation), or denied.
Related Mortgage Terms
- Appraisal
A professional assessment of a property's market value conducted by a licensed a...
- Debt-to-Income Ratio (DTI)
The percentage of your gross monthly income that goes toward debt payments, incl...
- Preapproval
A lender's written commitment to fund a mortgage up to a specific amount based o...
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
Understanding mortgage terminology helps you compare loan offers and make informed decisions. Use our mortgage calculator to see how these terms affect your monthly payment.