Underwriting
The lender's review of a loan application. Underwriters check income, credit, assets, and the property, and decide whether to approve, deny, or ask for more.
Your Room opens on this part of the sale, with the offer and everything before it already ticked.
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See how it worksWhere this comes up in a sale, and what follows
- Review offers and negotiate (comes before)
Part 1 of 4
Why a seller cares
Underwriting is where the buyer's loan is actually decided, and it is the stretch where most financed deals either firm up or fall apart. The financing contingency is sized to it.
Part 2 of 4
A simple example
The buyer's file goes to underwriting on day 5. Conditions come back on day 12, the appraisal lands on day 18, and the commitment issues on day 24.
| The underwriter's answer | What it means for your sale |
|---|---|
| Approved with conditions | Normal; the buyer clears a list and the loan proceeds |
| Suspended | Something big is missing; the timeline is at risk |
| Denied | The buyer usually leaves under the financing contingency |
Underwriting is the loan's real test. Everything before it was a forecast.
Part 3 of 4
What people get wrong
That preapproval means the underwriter already said yes. Underwriting starts after the contract, and it is a different person with a longer list.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines underwriting in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
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