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What does a Loan Underwriter do?

Learn all about Loan Underwriter duties, skills and much more. Get expert advice on how to become a Loan Underwriter.

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Brenna Goyette
Certified Professional Resume Writer, Career Expert

Published 3 min read

A loan underwriter is a professional who evaluates and approves or denies loan applications. They work in the financial industry and are responsible for assessing the risk of lending money to individuals or businesses.

Loan Underwriter job duties include:

  • Review and evaluate loan applications
  • Analyze applicant financial information
  • Determine creditworthiness
  • Make recommendations on loan approval or denial
  • Prepare loan approval documentation
  • Review and verify accuracy of loan documents
  • Coordinate with other departments to obtain required information
  • Maintain knowledge of current underwriting guidelines
  • Communicate with applicants throughout the underwriting process

Loan Underwriter Job Requirements

Loan underwriters typically have at least a bachelor's degree in finance, accounting, business, or economics. Many employers also require loan underwriters to be certified through the Mortgage Bankers Association. In addition to education and certification, loan underwriters must have several years of experience in the financial industry.

Loan Underwriter Skills

  • Analytical skills
  • Probability and statistics
  • Finance
  • Financial analysis
  • Credit analysis
  • Loan underwriting
  • Loan processing
  • Mortgage underwriting
  • Mortgage lending
  • Real estate
  • Banking

Related: Top Loan Underwriter Skills: Definition and Examples

How to become a Loan Underwriter

Loan underwriting is a process by which banks and other financial institutions determine whether or not to approve a loan for a potential borrower. The underwriter takes into account the borrower's credit history, employment history, and current financial situation to make a decision.

There is no one specific path to becoming a loan underwriter, but there are a few things that will help you on the way. Firstly, it is important to have strong math skills as you will be dealing with numbers and financial calculations on a daily basis. Secondly, experience in the banking or finance industry will be beneficial as you will have a better understanding of the products and processes involved. Finally, good communication skills are essential as you will need to clearly explain your decisions to both borrowers and lenders.

If you are interested in becoming a loan underwriter, start by doing your research and gaining some experience in the industry. Then, consider pursuing formal education in finance or business if you feel it would be helpful. With hard work and dedication, you can become a successful loan underwriter and help people achieve their dreams of homeownership.

Related: Loan Underwriter Resume Example

Related: Loan Underwriter Interview Questions (With Example Answers)