February 3, 2020

Underwriting explained

A loan application involves a lot of working parts. One of those parts is played by the underwriter, a professional who uncovers the truth about you as a loan applicant. Underwriting evaluates your honesty and creditworthiness as a borrower. And it helps the lender determine the level of risk involved in providing funds for the property. It’s the lender’s way of performing its necessary due diligence—of doing its homework on the applicant.

Learn more about what's involved in underwriting by reading my first article for Millionacres, the Motley Fool's new site offering free educational content to real estate investors, available here.