Once you’ve found a house, made an offer, and been pre-approved for a mortgage, you may think the tough work is done. You’d be wrong. Instead, you must first traverse the loan underwriting process, which is spearheaded by an underwriter.
Think of the underwriter as a Sherlock Holmes for the mortgage lending industry. With precisely three clues to work with — credit, collateral, and capacity – they must solve a mystery: whether you’ve represented yourself and your financial situation honestly, and how likely you are to pay back the mortgage on time.