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In their role of evaluating financial risk, depending on the type of risk, underwriters investigate all financial aspects of an applicant or investment. In fact, anything that involves a combination of risk and money, probably has an underwriter somewhere in the process. Underwriters work in a variety of financial industries including banking, insurance, investing, and more. The role of an underwriter is to protect the financial interests of the lender, insurer, or investor by assigning appropriate risk and compensation for assuming that risk.

Knowing the amount of risk involved in a financial venture allows for pricing and finally a decision to accept or reject the applicant or venture. The main goal of underwriting is to determine risk. Then we get an appraisal of the property to see if the loan amount is appropriate, and do a title search to make sure there are no liens on the property." How the process of underwriting works

also check credit scores - it's difficult to overstate the importance of a credit rating to the process. " look at debt-to-income ratio - basically, how much you owe versus how much you earn. "Underwriting is basically just verifying all of the information the borrower has provided on their loan application - their income, their tax returns, their bank accounts and other assets," says Mayer Dallal, managing director at Mortgage Bank of California. When it comes to mortgages, for example, underwriters will look at things like a person's credit history to determine how much of a risk they are as a borrower. If the risk is considered worth taking, the underwriting process determines how much to charge. Underwriting determines how risky a financial venture such as a loan, insurance policy, or investment is and whether to accept that risk.