Finance
A Minnesota homebuyer is told their loan is 'in underwriting.' What does the underwriting process evaluate?
AThe value of the property only
BThe borrower's creditworthiness, income, assets, and the property's value✓ Correct
COnly the title search results
DThe seller's financial condition
Explanation
Mortgage underwriting evaluates the 'Three Cs': Credit (credit history and score), Capacity (income and debt ratios), and Collateral (property value). Underwriters review all aspects of the loan application to determine if it meets the lender's guidelines. Minnesota underwriters must comply with both federal guidelines (for conventional/FHA/VA loans) and any additional state requirements.
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