Underwriting in real estate is the process of a third party determining how much risk a lender or insurance company is willing to take on a person.
There are three types of underwriters in real estate:
- Mortgage underwriter
- Title insurance underwriter
- Homeowner’s insurance underwriter
Each of these underwriters are tasked with ensuring you and the property you are buying will be a safe investment for their companies to make.
All forms of real estate underwriting occur in the background of the closing process, and you will have no contact with the underwriter other than through your lender, insurance agent or title company.
Now that you know what underwriting in real estate is, lets look at the role each underwriter plays in the process when you buy a house.
The Role of the Mortgage Underwriter
A mortgage underwriter’s role is to determine your financial ability to pay the lender back for your mortgage. [Read more…]