How to Become a Mortgage Underwriter
Step 1: Understand the job description and responsibilities of a Mortgage Underwriter
What does a Mortgage Underwriter do?
A Mortgage Underwriter underwrites mortgage loan applications and evaluates loans in order to maximize organizational profit and minimize risk or loss. Monitors property appraisal process. Being a Mortgage Underwriter assesses risks to determine approval status. May require a bachelor's degree. Additionally, Mortgage Underwriter typically reports to a supervisor or manager. The Mortgage Underwriter gains exposure to some of the complex tasks within the job function. Occasionally directed in several aspects of the work. To be a Mortgage Underwriter typically requires 2 to 4 years of related experience.
A mortgage underwriter works for a bank or other mortgage lender.
They are responsible for determining the eligibility of a borrower for a mortgage loan based on the lender’s guidelines.
An underwriter will review documentation like bank statements, pay stubs, appraisals, and credit reports to determine the creditworthiness of a borrower.
Based on this review, the underwriter may approve the loan, deny the loan because it does not meet the lender’s guidelines, or ask for additional documentation for further review.
Let’s take a closer look at some key information that an underwriter might review for a loan decision.
Step 2: Learn best tips to become a Mortgage Underwriter
Best tips for those who want to become a Mortgage Underwriter
Here are some tips to become a Mortgage Underwriter.
Income verification and documents.
Title search and title insurance.
Repair Your Credit Before You Apply.
Analyze Your Debt-to-Income Ratio.
Step 3: View best colleges and universities for Mortgage Underwriter
Best colleges and universities for Mortgage Underwriter
- Florida Southern College
- Colby College
- Dartmouth College
- University of Notre Dame
- Western Washington University
- Canisius College
Step 4: Think about whether is it worth to be a Mortgage Underwriter
Is being a Mortgage Underwriter Worth it?
Mortgage underwriters spend time crunching numbers, reviewing documentation and making judgment calls on risk assessments, so they must complete coursework to fully understand the principles behind underwriting.
The course covers the loan application process, required qualifications to obtain mortgage loans and underwriting guidelines.
Some colleges offer the course Introduction to Underwriting to prepare students to work as mortgage underwriters or mortgage lenders.
Applicants applying for a license must undergo an FBI criminal history background check, provide authorization for the Nationwide Mortgage Licensing System and Registry to obtain a credit report, pass a national mortgage test and take 20 hours of pre-licensure education courses approved by NMLS&R.
This person decides whether you are financially able to handle the responsibility of a monthly mortgage payment.
Step 5: Prepare relevant skills for being a Mortgage Underwriter
What skills do you need to be a Mortgage Underwriter?
In order to succeed at this level, when working with both management positions and positions more junior, a variety of skills are required. A strong grasp of the following skills is needed to perform this role: Mortgage Loans, Lending Regulatory Compliance, Real Estate Appraisal Review. You would need to be proficient in the following: Underwriting & Rating Software. Although there may be many skills for success in this role, some companies may be willing to provide on the job training if you excel in other areas.
Underwrite and approve mortgage applications by reviewing credit bureau, title commitment & financial statements.
Perform full review of mortgage loans in accordance with underwriting guidelines to ensure secondary market and investor salability.
Developed comprehensive knowledge of FNMA, FHLMC and HARP mortgage guidelines.
Complete income analysis of mortgage loan applications determining applicants' ability to repay the loan.
Today’s underwriters must be properly licensed and versed in the types of loans their employing bank, finance firm or broker works with.
Step 6: View average salary for Mortgage Underwriter
How much does a Mortgage Underwriter make?
The average salary range for a Mortgage Underwriter is from $64,515 to $84,931. The salary will change depending on your location, job level, experience, education, and skills.
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Average salary for Mortgage Underwriter jobs
Step 7: Find relevant Mortgage Underwriter jobs, and apply.
Looking for Mortgage Underwriter jobs?
Here are some Mortgage Underwriter jobs in the United States.