Underwriting

Underwriting is the process by which lenders assess the risk and creditworthiness of potential borrowers before approving a loan application. This crucial step involves evaluating various factors, including the applicant’s credit history, income, assets, debts, and employment status. Underwriters also consider the purpose of the loan and the value of any collateral offered. The goal is to determine whether the borrower is likely to repay the loan on time and in full.