Finance
What is 'underwriting' in Delaware mortgage lending?
AThe process of writing up the loan documents at closing
BThe lender's process of evaluating the borrower's creditworthiness (income, credit, assets), the property's value (appraisal), and the loan terms to determine whether to approve the loan and at what terms✓ Correct
CThe mortgage insurance company's process of insuring the loan
DThe title company's process of examining the title before issuing insurance
Explanation
Mortgage underwriting is the lender's comprehensive evaluation of: (1) the borrower — income verification, credit history, assets, employment stability; (2) the property — appraisal, condition, marketability; and (3) the loan structure — LTV, DTI, compliance with guidelines. Underwriters approve, conditionally approve, or deny loan applications based on this analysis.
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