Please explain what the underwriters do?

DebtFree2012

Hi there

I am hoping to have paid my last bit of debt off and have a few months clear before applying for a mortgage next year (Dave Ham - if it doesn't work out like this I shall post the other question I had in earlier post nearer the time - thanks). Assuming I do this, can you please explain to me firstly what the underwriters do and secondly how my since closed debts would affect the mortgage app? I pay well over the min every month and haven't been in trouble with them.

Thanks - just trying to gather my thoughts and do some research before the big move possibility next year

GMS

An underwriter would look at your application and match it to their lending criteria.

Previous credit would be looked at and taken into account. Poorly maintained credit would have a negative affect, well maintained a positive one.

Most lenders use credit scoring so it is a pass or fail on that.

Underwriters will check the income is as declared, ensure the person is who they say they are and check property is suitable security.

Basically the underwriter decides if the applicant is a suitable risk for the loan and that the property is suitable security for the lender.

harvey115

I thought they were just some people at the bank who say 'Nah or Ya' over a cup of tea

DebtFree2012

Thanks GMS - so I should be ok then as long as I can clear my debt (or at least reduce it) and continue to maintain a good history.

I am nervous already and the house isn't even up for sale yet.

mrs_motivated

harvey115 wrote: »

I thought they were just some people at the bank who say 'Nah or Ya' over a cup of tea

I want that job

Simon_gloster

No you wouldnt trust me.

opinions4u

I posted this 3 years ago.

Might help:

Mortgage Underwriting From The Underwriter's Point of View

colmac71

Just to note that some of the smaller Building Societies don't just take a computer answer - Mansfield, National Counties, Skipton to name but a few will look at cases individually

The underwriting guide was really good - just had a conversation with an underwriter this morning - they do look at bank statements and all of the things line by line on the bank statement - so be prepared to answer any questions. That's my experience at least

Gonzo33

harvey115 wrote: »

I thought they were just some people at the bank who say 'Nah or Ya' over a cup of tea

You forgot the biscuit.

DebtFree2012

Very useful - Thank you