Glossary
What is Underwriting?
Underwriting is the process a lender uses to evaluate a loan application and decide whether to approve it and on what terms. Underwriters review credit reports, bank statements, tax returns, financial statements, collateral, industry, and the purpose of the loan. They may request additional documents or explanations. Underwriting can take anywhere from a day for some short-term products to several weeks for SBA and commercial real estate loans. Responding quickly to requests helps keep it moving.
Example
During underwriting, the lender asks for an explanation of a large one-time deposit on the bank statements.
Related terms
Questions about an offer? Your advisor will explain every term.