Determine the amount of mortgage to offer.
What does a Mortgage Underwriter do?
As a Mortgage Underwriter, you evaluate the financial risk of a mortgage application. You calculate percentages, then use the numbers you come up with to figure out the maximum amount of a mortgage to grant. Your role as a Mortgage Underwriter is very important to the company you work for because you maintain the lowest possible degree of financial loss.
Each day you go to work as a Mortgage Underwriter (some work from home, but most work at a bank), you evaluate the latest mortgage applications. To do that, you look at household income, down payment amount, and the purchase price of the property. You throw all of those numbers into a program to figure out if the application is acceptable.
Next, you determine the amount your company can give, but it’s not as easy as accepting whatever number your computer spits out at you. You must use your accounting smarts to adjust the value with a few things in mind. These factors include the forecasted value of the property, the current economic climate, and whatever else may factor in with each particular case.
The last step in this process is to write up your findings in a risk analysis report. This is the bottom line for the applicant and for the bank. It outlines the risk to your company and the potential financial loss. This determines the lending criteria and is used as a tool for evaluating your job performance too, so give it your utmost attention.