What Does an Underwriter Do?

Video Transcript

"Hi, this is Laura Turner and today I'm going to answer the question, what does an underwriter do. A lot of times people will sort of hear an underwriter is going to come in and take care of that, but nobody really knows what it means. And underwriter is a third party who's looked at the financial facts of a client and determines whether or not to give them loans and how much insurance and whatnot a client should be eligible for and things like this. An underwriter is important because he not only protects the companies which are giving out the loans and the insurance companies which are providing your insurance for you but they also protect you by analyzing the process, as their sole role and responsibility when the people who are helping you otherwise like your agents are possibly you know miss things and you know may not assess you quite as well as the underwriter will. So if you have a disinterested third party who comes in and takes over and looks at the loan and looks at the insurance and figures out where if anything happens you've got a greater chance of not falling in to a problem. That's the answer to what does an underwriter do."