Underwriting is a crucial step in the mortgage loan application process. It involves assessing the borrower’s financial details, creditworthiness, and the property that is being financed. The purpose of underwriting is to determine whether to approve or reject the mortgage loan application. This evaluation helps the lender assess the borrower’s ability to repay the loan and the risk associated with the transaction. Factors such as income, credit score, employment history, and property appraisal are considered during the underwriting process. It ensures that the lender makes informed decisions on the’s and the property.