Finance
What is the purpose of mortgage underwriting?
ATo set the interest rate for the loan
BTo assess the borrower's creditworthiness and the property's value to determine loan eligibility✓ Correct
CTo provide a title search and abstract
DTo calculate the closing costs for the transaction
Explanation
Mortgage underwriting is the process by which the lender evaluates the borrower (credit score, income, debts) and the property (appraisal) to determine whether to approve the loan and on what terms. The goal is to assess the lender's risk.
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