Underwriting In Home Loan

1. Underwriting In Home
Loan

2. What Is Underwriting?
• Underwriting is the process through which an
individual or institution takes on financial risk for
a fee.
• Underwriters assess the degree of risk
• Underwriting helps to set fair borrowing rates
for loans by accurately pricing investment risk.

3. How Underwriting Works
• Underwriting involves conducting research and
assessing the degree of risk each applicant
• Underwriters check the previous history of
applicant
• A mortgage underwriter’s job is to assess
delinquency risk, meaning the overall risk

4. How Underwriting Works
• To do so, the underwriter evaluates factors that
help the lender understand your financial
situation, including:
1. Your credit score
2. Your credit report
3. The property you intend to buy

5. How long does mortgage
underwriting take?
• The mortgage underwriting process can take
from a few days to a few weeks, depending on
whether the underwriter needs additional
information, and how streamlined the lender’s
profile is.
• Underwriting is just one part of the overall
lending process. It can take 40-50 days to
disburse a loan

6. Steps Involved In
Underwriting
1. Income Verification
2. Appraisal
3. Title Search And Title Insurance
4. Underwriting Decision

7. Income Verification
1. Underwriter do the income verification of
customer by checking the documents
2. Underwriter can also call applicant to check
the income

8. Appraisal
1. Underwriting team conduct an appraisal of the
property.
2. This is to assess whether the amount you
offered to pay is appropriate based on the
house’s condition and comparable homes in
the neighborhood.
3. The cost of the appraisal can vary depending
on the complexity and size of the home.

9. Title search and title
insurance
1. Underwriting team company will research the history
of the property, looking for mortgages, claims, liens,
easement rights, zoning ordinances, pending legal
action, unpaid taxes and restrictive covenants.
2. The title insurer then issues an insurance policy that
guarantees the accuracy of its research.
3. In some cases, two policies are issued: one to protect
the lender and one to protect the property owner.

10. Underwriting Decision
Once the underwriter thoroughly reviews your
application, the best outcome is that you are approved for
a mortgage. That gives you the all-clear to proceed to
closing on the property.

11. Underwriting Decision
However, you might receive one of these decisions
instead:
1. Approved
2. Rejected
3. Approved with conditions

12. Approved
• It means the loan is approved without any issue
• If the profile is good, then loan can be easily approved

13. Rejected
• Due to Low CIBIL Score
• Due to Fraud Documents
• Income doesn’t match the requirement of Applicant

14. Approved with condition
• If the CIBIL score is not too Good and not too bad, then
Can be approved with condition
• Applicants having documents issue

15. Thank You