The process by which a lender evaluates a mortgage application to determine if the borrower qualifies and at what terms.
The underwriter reviews credit history, income, assets, debt obligations, employment stability, and the property's appraisal. They verify all the documentation submitted and identify risk factors.
Underwriting can take a few days to a few weeks. It's the most thorough phase of mortgage approval — be prepared to provide additional documents on short notice.
Outcomes: approved, approved with conditions (most common — provides a list of remaining items), suspended (need more info to decide), or denied.