How To Become A Mortgage Loan Underwriter With Our Mortgage Underwriter Training Courses

What Is A Mortgage Underwriter - And What Do They Do?

An underwriter is a financial professional who reviews the finances of loan applicants to assess how much risk a lender will take on if they decide to give you a loan. In other words, the underwriter's job is to asses the risk of loan re-payment.

Individuals interested in becoming a mortgage / loan underwriter should be aware that there are several types on underwriting specialties, so you should make sure to get training for the area that most interests you.

For Residential Loans
The most-common loan underwriter areas include underwriting mortgage loans for residential loans such as Conventional, FHA, and VA loans, as well as government load programs such as Direct Endorsement (DE) and LAPP/SAR.

For Commercial Loans
Commercial loans vary from residential loans in a number of ways, including structure, how they are valued, and how they are regulated, serviced, and reported.

What Is Mortgage Underwriting?

Underwriting is the mortgage lender's process of assessing the risk of lending money to an applicant. This involves reviewing the applicant's income and expenses, investments, credit history, and other factors. This process includes a review of the applicant's:

• Job / Income / W-2 forms
• Expenses
• Credit Report / Credit Score
• Bank statements
• Tax returns
• Property Appraisal
• Maximum loan-to-value (LTV) ratio
• Maximum debt-to-income (DTI) ratio
• Genesis of funds
• Financial reserves
• If collateral is needed

If the loan is approved, the underwriter then makes sure all the required documents are complete and accurate so the loan can be "closed".

Things To Tell Potential Clients

Below are a couple of things that can improve an applicant's chances of getting a loan:

• Show consistent employment - don't switch jobs!
• Don't do anything that could lower a credit score - such as opening new charge cards or making large purchases
• Pay off debts - and don't do anything that will increase debts

Recommended Training Courses For How To Become An Underwriter

To find mortgage underwriter training courses, either select one of the recommended courses or select "Underwriting" from the "Professional Development" section of the search box below.