Anonymous
Anonymous asked in Business & FinanceRenting & Real Estate · 1 decade ago

What is a underwriter and what does this mean?

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  • 1 decade ago
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    An underwriter typically works for a lender and helps them by going over all the required paperwork and giving the final approval for a loan. They are the ones who make sure you qualify for whatever loan you are applying for. They will also order any necessary items like title work, appraisal, etc.

    I included a link that might help. Let me know if you have questions!

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  • Anonymous
    1 decade ago

    An analogy of an underwriter would be for example: Hey dad can I go to the movies with such and such? Have you took care of everything? Yeah. Ok well go check with your mother and when she says yeah then go right ahead. Get to mom...Mom can I go to the movies with such and such.. Mom says have you cleaned your room, have you took out the trash, did you feed the dog, did you do your laundry, did you set your alarm for practice in the morning, do you have enough money, what are you going to see, who are you going with, where do they stay and who are they're parents, whats they're contacts, what time are you coming home, blah blah blah... Thats exactly what an underwriter does but place them in a loan scenario...They look over your file and if everything is good they say we continue to closing the loan and if not they say you forgot this this and this, and until you provide this additional info we wont be doing anything. Some are very pickie and some are down to Earth. If you catch a down to Earth underwriter then your loan should close 80% of the time. If not I dont know what to tell ya!!!

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  • 1 decade ago

    The underwriter is the person who does the final sign off on your loan.

    What are they looking for?

    All the documents required to sell the loan as "conforming to lending guidelines".

    I usually get this call several weeks into a purchase contract from my buyers.

    "Why does the lender keep asking for more and more loan documentation?"

    Answer, so the loan conforms to all the requirements the INVESTOR will demand to purchase the paper.

    Many lenders don't keep the loans they make.

    They bundle them up and sell them to investors.

    THAT'S what the underwriter is there for. To ensure that every shred of evidence is in the file so there are no surprises when they go to sell your loan.

    Hope this helps.

    Terry S.

    http://www.Welcome2Arizona.com

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  • 1 decade ago

    found the real estate definition for underwriting

    "Underwriting

    The process of evaluating a loan application to determine the risk involved for the lender. Underwriting involves an analysis of the borrower's creditworthiness and the quality of the property itself."

    here is a cool site with a ton of real estate information including a real estate glossary... hope it helps!

    http://www.goduckcreek.net/

    http://www.goduckcreek.net/glossary.html

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  • Anonymous
    1 decade ago

    From my understanding the underwriter is the final check to be sure all the necessary paperwork is in hand, verify figures, just the last check to be sure everything is in order before you sign docs.

    Source(s): Recent real estate sale
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  • 1 decade ago

    In real estate there is basically two types of underwriters that have a say in a transaction.

    That's the title insurance underwriters and the bank loan underwriters they basicall do the same thing but for different products.

    They determine the risk of their company to get involved in your transaction as such risk is discovered in the information you provide to their company and what information they discover that you did not provide.

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  • 4 years ago

    What Does Underwriter Do

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  • 1 decade ago

    an underwriter is someone who will financially support your efforts.

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