Thursday, August 22, 2013

Types of Mortgage Underwriting Services

Mortgage underwriting is a must nowadays, given the number of unpaid credits, people who become homeless because of mortgage loans, frauds and so on. It is probably the only way through which you can get (as a client) or offer (as a bank) a loan, without becoming worried about the payment capacity and possible financial loss. There are a lot of companies that offer mortgage underwriting services for better experiences, as far as bank loans are concerned.

Here you have a few types of underwriting services, that are currently available on the market:

Clarification of the loan conditions 

This one is probably the most important of all mortgage underwriting services, as it makes sure that the loan can be approved in safe conditions, both for the bank and the client.

After a loan application is reviewed, a list of documents is evaluated by the underwriter. The mortgage will be approved only if all the documents (recent pay stubs, explanation letters, bank statements and many others) are adequate to future payment requirements.

Title Review 

Through this service, mortgage underwriting companies protect the bank and the client, by verifying if the documents are truthful, if there are no legal claims related to their previous activity and so on.

Appraisal review 

This mortgage underwriting service is about providing the Appraisal Review Report. Depending on this report, the underwriter will decide whether the claimed value of the property corresponds with the actual value on the market.

The way how this report looks may vary from one company to another. In some cases, it may include some photos of the property, its history (concerning sales and adjustments history), a location map and even more additional information.

The underwriter will also make sure that the appraiser's signature is authentic and the license number is veridical.

Fraud Guard Review

This one is probably the most serious of the mortgage underwriting services, as it is about verifying potential fraud attempts, such as falsification or other abnormalities in the files of the loan. If something like this is discovered, the application will be automatically rejected.

Automated underwriting systems

Running automated underwriting systems is a more and more prevalent mortgage underwriting service. It is about a system that uses a formula-based software, for data processing. It can even determine approval or denial of the loan, depending on some specific criteria. It is probably the latest trend on the mortgage underwriting services market.

Anyway, do not imagine that the whole work is computerized. An underwriting is always there to verify the process and correct the errors, if there are any.

If you use mortgage underwriting services it will make sure that the loan is 100% secure and it will not lead to problems. Make sure that you choose a professional company, because there are more and more of them and it is more difficult than it may seem at the first sight. A serious mortgage underwriting services provider is the one that provides top services and works with expert underwriters, offering you high quality guarantee.

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Author: Mohammad Waqas
Mohammad is the founder of WINFOPTC. He loves to spend time with his blogs and loves to help the people over the internet. Read More →

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