Definition of Underwriter
Orange County Underwriter
An underwriter is an Orange County, CA real estate professional that works for mortgage lenders and mortgage bankers and is responsible for getting the home loan approved though the end investor (usually Fannie Mae, Freddie Mac or FHA). If a borrower is using a mortgage broker, the broker will send the loan documents to the lender's Orange County underwriter who will use DU or DO to assist them with the underwriting process. The underwriter evaluates the entire loan application; including the appraisal of the home, the borrower’s debt ratio, verification of assets and other documents to determine whether to approve or decline the loan application. Underwriting guidelines are stricter now than they were prior to the credit crisis beginning in the late 2000’s and the only real secondary mortgage market that exists now is the Government Sponsored Enterprises (GSE).
BanCorp’s thinking behind pre-approvals:
Based on the fact that we know that a buyer who is fully pre-approved for an Orange County, CA mortgage has so much more leverage over a buyer who is not, it is very rare that we will represent a home buyer who has not yet been pre-approved for a mortgage. When a homebuyer is pre-approved the seller knows that the buyer is serious and a preprinted letter from the mortgage company stating that the buyer is pre-approved will be looked out very closely by the seller and the listing agent. If the buyer does not have a home to sell (a sales contingency) and they are already pre-approved for the loan, there is no reason that they could not close on the escrow (COE) within 30 days, which normally is attractive to a seller.