Underwriting
The lender’s detailed verification and risk assessment of your application. An underwriter reviews income, assets, credit history, appraisal, and title before issuing a final approval (or a conditional approval with remaining items to clear). This is where documentation gaps surface — which is why self-employed borrowers benefit from organizing their file before applying.
How does this affect your loan? Estimate self-employed qualifying income with the DTI calculator, or read the self-employed mortgage guide.
Related terms
- LTV (Loan-to-Value Ratio) — Loan amount divided by the appraised property value. A $320,000 loan on a $400,000 home is 80% LTV. Lower LTV…
- CLTV (Combined LTV) — Total of all liens on the property (first mortgage + any HELOCs or second mortgages) divided by property value…
- Pre-approval — A conditional commitment from a lender based on a full review of your income documents, assets, debt obligatio…
- Pre-qualification — A preliminary, informal estimate of how much you might borrow, usually based on self-reported information with…
- Compensating factors — Strengths in your application that offset a weakness elsewhere. Common examples: large reserves offsetting a h…
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Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.