What is the purpose of an "Underwriter" on a home sale.
In most cases, the " Underwriter" is the decision-maker for the mortgage lender. More rarely, the term underwriter may also refer to the decision maker for the home insurance or mortgage insurance company.
An underwriter is highly trained to evaluate the risks and strengths of a loan application in the context of a particular lender's guidelines and loan requirements. The underwriter requests any additional information necessary to make a lending decision, and makes the final determination as to the approval or denial of your loan at that particular lending institution. It is the underwriter who issues a "mortgage commitment" when all documents and verifications are complete.
In most cases, the customers (or "borrowers") will not speak directly to the underwriter (though they may if they are clearing up an unusual question or circumstance). Most lenders find that their underwriters accomplish more day to day and that their loans are decisioned most fairly and without prejudice if there is little or no contact between the underwriter and the potential borrowers.
An underwriter does NOT generally have any control over the note rate and terms of a mortgage, nor is he or she involved in the negotiation of rate locks, closing costs, or concessions. These tasks generally fall to the Loan Officer or Broker, who works closely with the underwriter and other "behind the scenes" lender employees throughout the process.