Most individuals seeking to purchase a home will not have sufficient funds to pay for that home with cash. The loan obtained from a financial institution to finance the purchase of a primary or secondary residence is known as a mortgage. There are several industry-wide accepted guidelines which establish the criteria for obtaining a mortgage. The person seeking to obtain the mortgage (i.e. the buyer), must meet certain standards of creditworthiness, reliability of income, debt-to-income ratio, and availability of funds to cover a down payment and closing costs.
Because obtaining approval for a mortgage is such a complicated process, requiring many different documents from a myriad of sources, banks have established the position of mortgage underwriter to review and approve home loan applications. Mortgage underwriter jobs, therefore, are an integral part of the mortgage portion of banks' financial portfolios. Once the loan officer obtains all the necessary documents and information from the buyer, the underwriter must review each document for accuracy, verify its source, and determine if the prospective borrower is qualified to receive the home loan. There may be requests for more information or updated forms during the process, all of which must be organized and managed by the mortgage underwriter.
Underwriter jobs are such an important part of the banking industry that the skills, qualifications and experience required to obtain such a position are very specific and often rigorous. Fortunately, because of the high level of responsibility conveyed upon the underwriter, the salary can be quite lucrative, and the opportunities for advancement for especially skilled mortgage underwriters are excellent.
After establishing an interest in the mortgage industry and an aptitude for finance and accounting, a person interested in mortgage underwriter jobs should establish a plan for entering the banking field. This will first include obtaining a Bachelor's degree from an accredited institution in finance, accounting, or related field. During a person's academic career, it is a good idea to secure a full or part-time, entry-level job at a bank or other financial institution to start gaining experience in the chosen industry.
Once the candidate for the mortgage underwriter position has completed his or her education, they should consider ways to enter or move up in the banking world. Establishing relationships and networking in the industry while in an entry level position will prove invaluable once the candidate starts to seek actual mortgage underwriter jobs. One should also use this time to take advantage of training and certification opportunities offered through such institutions as the US Department of Housing and Urban Development (HUD) and the US Federal Housing Administration (FHA).
If a person of the right aptitude and career aspirations follows the right steps to obtaining a position as a mortgage underwriter and is willing to start in an entry-level position and network, mortgage underwriting can prove to be an excellent and rewarding career.
