ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Real Estate Underwriting

Updated on June 4, 2013

The process of real estate underwriting is often misunderstood. The underwriter is just as vital a part to closing on your home as is the loan officer. Looking for a mortgage can be an arduous progression of mind numbing visits to banks to see about finding the best mortgage terms and interest rates.

Any good real estate agent worth anything at all will normally ask if you have an approval letter before they start showing you homes. The reason for this is that if they spend hours and hours helping you find your dream home and then you cannot secure financing, they have essentially wasted their time. Obtaining pre-approval is the fastest way to set out on your home shopping adventure.

Other than pre-approval, you might obtain what is called pre-qualification. The difference between these two terms is that if you are pre-qualified it typically means a loan officer has offered his or her opinion that the person is worthy of obtaining a loan. Most of the information can be taken verbally and perhaps a credit report will be reviewed. This is not as secure as pre-approval, which means the potential borrower has gone through the entire loan process and all of the documents have been approved.

When someone decides to buy a home there are always certain steps that cannot be avoided. One of those steps is getting pre-approved for financing because most people can’t buy a home without a loan. There are specific things you have to do in order to secure financing for your home.

After the assumed loan is approved, the borrower shops for a home. When a home is selected, the buyer goes back to the bank with all of the information and the loan then starts the underwriting process. The underwriting process is where all of your documents you submitted to your loan officer are verified. Your bank information and your pay stubs, investment info and references, and more. You will need at least 30 days worth of original pay stubs. Two years of W-2 forms are additional helpful information if you have them. If you are self-employed, prepare to show two years worth of tax returns.

All assets must be accounted for and documented. If you have 401k accounts or mutual funds or stocks and bonds, you should gather. At least two forms of identification will be required. A driver's license and passport or some other government issued id is perfect as they have pictures. Your social security card is another form of id you can use.

The underwriter will work to verify all of your documents and declarations by calling your employer, your landlords, and even your bank. An underwriter may take everything the loan officer gave them and be happy with it or they may ask for even more documentation. They can also ask the potential borrower more questions to ascertain the truth of the financial situation to their satisfaction.

If the underwriter does decide to deny the loan, they must provide a valid reason. They are not allowed to discriminate, but they can use their discretion when pre-approving the loan.

Denver Real Estate


Submit a Comment

No comments yet.


This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)