Definition
The lender's process of evaluating a borrower's creditworthiness and the collateral before approving a loan.
Example
Underwriting issued conditional approval subject to sourcing a $12,000 deposit.
Related terms
- Acceleration Clause
- Accrued Interest
- Adjustable Rate Cap
- Adjustable-Rate Mortgage
- Amortization
- Annual Percentage Rate
Frequently asked questions
What does Underwriting mean in real estate?
The lender's process of evaluating a borrower's creditworthiness and the collateral before approving a loan.
How is Underwriting used in practice?
Underwriting issued conditional approval subject to sourcing a $12,000 deposit.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.