Finance
A Washington buyer applies for a loan. The lender runs a credit check, verifies income, and orders an appraisal. This process is called:
AOrigination
BUnderwriting✓ Correct
CProcessing
DFunding
Explanation
Underwriting is the process of evaluating a borrower's creditworthiness, income, assets, and the property's value (appraisal) to determine if the loan meets the lender's guidelines. Underwriters make the final loan approval decision.
Related Washington Finance Questions
- Washington borrowers applying for a conventional conforming loan must meet Fannie Mae/Freddie Mac guidelines regarding debt-to-income ratios. The typical maximum total (back-end) DTI for conforming loans is:
- Private Mortgage Insurance (PMI) is typically required on Washington conventional loans when:
- In Washington real estate, a 'participation mortgage' is one where:
- A Washington borrower with an FHA loan wants to remove mortgage insurance. Under current FHA rules for loans originated after 2013 with less than 10% down, MIP:
- A Washington homebuyer who qualifies for a USDA rural development loan must purchase a property:
- Under the federal Truth in Lending Act (TILA), the Annual Percentage Rate (APR) disclosed to a Washington borrower:
- Washington borrowers using FHA loans must pay:
- A Washington seller who accepts a buyer's VA loan offer should know that VA loans:
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