Definition
Underwriting is the process where lenders evaluate your financial information, property details, credit, and risk before approving a mortgage. They verify employment, order appraisals, check title, and request additional documentation. It typically takes 3-5 business days.
Where you’ll meet it
How much can I borrow, and what is pre-approval?
See it in Buying my first home · Step 2About this term
Underwriters review the borrower's credit, income, employment, assets, and liabilities against lending guidelines. They also order a property appraisal and title search to ensure the collateral is adequate and ownership is clear. Underwriting typically takes 3-5 business days and may result in conditional approval, denial, or clear-to-close status.
Pro Tip
Respond quickly to underwriter requests and don't make major financial changes (new debts, job changes) during underwriting as it can delay approval.
Example
An underwriter reviews a borrower's application, verifies employment with the employer, orders an appraisal, and requests additional documentation for a recent job change before granting conditional approval.