A loan officer explains how underwriting works in home loans, what underwriters actually do, and why they're incentivized to approve loans that meet the rules. The video breaks down the relationship between loan officers and underwriters in the mortgage process.
Underwriting is the department with the bank or lender that reviews someone's home loan and compares it to the mortgage rules and then either issues an approval or denial. Now, a big part of my job as a loan officer is knowing what the underwriters are looking for and how we best present that to them. So I'm kind of like the buffer between the homeowner and the underwriter. I also like to make sure my clients know that underwriters are actually incentivized to approve loans. So they want to, but it's a bigger hit against them if they let something slip through and approve something that didn't fit within the rules. So that's the position of an underwriter. I think it's helpful to know kind of the underwriting world and its importance in the home loan.
