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today we're going to talk about what an underwriter does yes an underwriter in the mortgage process so a lot of times you'll hear well the underwriter wants or the underwriter said and you're like oh who's this underwriter who is this person so the underwriter's job let me give you a quick overview of the loan process are you ready so i'm a loan originator my job is to a get the client okay licensed in 44 states guys come on um and then to look at the client's stuff structure the loan according to investor guidelines that's my job so when i say investor i'm talking about fannie mae freddie mac ginny uh jimmy may google them all you'll see this is where [Music] i would say 90 but i don't know if that's the exact statistic but the bulk of mortgages go to those three entities if you're va you're going to ginny may you're not going anywhere else if you're doing a conforming 30-year fixed you're going to fannie or freddie um a lot of times people go well if i use my credit union won't it stay with them no they're not going to keep a va loan on their books it goes to jenny may they'll send you the bill every month but jenny may is going to own your note if you're a va fha loan fannie mae and freddie mac will a small credit union do a 30-year fixed on their books probably not the odds are incredibly low they're going to sell it to fannie mae and freddie mac and they're going to send you the bill every month so here's the deal my job is to make sure when i put your loan together you meet those guidelines okay they're not set by me they're not set by my underwriter they're set by fannie mae they're set by freddie mac they're set by ginny may and you can go online guys and you can google guidelines like if you want to get wild go online and google i do it all day long they change constantly there's stuff to always consider but they are worth a look at so my job is to make sure that you meet the investor guidelines run it through what we call desktop underwriting so desktop underwriting is an automated version just kind of scrubbing the file to make sure that it has a chance and we'll get an approve eligible that's what we always want if we get a referral with caution that's not a file i can do there are some places that will do refer with caution i can't um with va if you get an ineligible we can look at doing a manual underwrite but that's different as well the key is as an originator i am praying for that approve eligible because if i get that approved eligible you're good now once um i do that let's say you find the house you go to my processor my processor gets all the documents he looks at it again to make sure do we have all the documents we need for this end investor and then it goes to underwriting the underwriting's job is to make sure that we got everything we didn't miss the guidelines right and that everything looks good and there's nothing they scrub even more data so i'm like the first round my processor is the second round the underwriter is the third round so they're looking at data that we don't necessarily have as well like they're the ones generally looking at the full reports on if you know for instance you tell me you're not married and you're married or stuff like that and they're also the ones that can see the alerts on foreclosures we usually see that on the credit report but they have some back-end systems as well so they're scrubbing it the third time and they're the one that's ultimately responsible if something's missed okay and sometimes what they'll do is they'll ask for some nitpicky stuff and the reason they're asking for that nitpicky stuff is because when ultimately us as the lenders sell that loan to fannie freddie ginny whomever we're selling it to if we're missing something it comes back on them it also can come back on you because we will be reaching out saying hey we really need this can you get this to us no one likes that it's the worst so you need to think about an underwriter as the person who's just making sure everything's perfect they're not your enemy they're not against you you know sometimes i'll hear well that's so stupid why do they need that and it's like you know we'll ask for a letter of explanation and a lot of times letter letters of explanation are what i would call a file filler it's a feel-good condition it makes the underwriter feel good about the file because they feel like this letter of explanation will have it have a higher success rate down the line instead of being irritated by it guys just be like okay cool it's three minutes of your day and it makes the whole thing so much easier it makes the end easier it makes everyone happier so it's like if you have to write a three-minute letter of explanation just go with it they're trying to put your file together so that ultimately the person who reviews it who doesn't know you who's never talked to will be able to look at the whole file and say wow this is this is a good file this is a super good file so that's what the underwriter does the underwriter is what i would call the final checker it's their job to make sure that nothing was missed and that all rocks were overturned because we don't want to end up in a position where we're declining your loan late because something was missed or down the line we're asking you for stuff because the end investor won't buy the loan so whenever people are saying oh that underwriter you know what a picky underwriter yes they can be a pain in the butt but at the same point i know that the end result is good and that's what we all want we all want happiness at the end even if it takes a little more work in the middle so i hope this has been helpful in explaining to you what an underwriter does if you have any questions comments feel free to reach out and i do just have to throw in underwriters at least the ones i've talked with they're so nice they always want to try to get people homes they just have to be able to make it make sense so don't think of an underwriter as like a bad character it's just the person whose booty's ultimately on the line if something's missing so i hope this has been helpful and i hope you have a great weekend thanks