Have you ever wondered about the process of obtaining a VA loan? You finally get all of your information together to submit it to the underwriter, and then your request for a loan is rejected. You are left wondering what went wrong, what information you could have forgotten to submit, what mistake happened with the paperwork, etc. You can't seem to come up for an explanation of what happened because you do not really know what the job of an underwriter is. You do not have any idea how underwriters become certified to make the decisions that affect the financial situations of countless potential borrowers. You have questions, and you want answers.
Underwriters, whether directly employed by the FHA or whether employed by a lender, must all have the same certification. All underwriters must be certified under the FHA guidelines in order to analyze information for loans. The underwriters generally attend a specific university that specializes in the underwriting process. Once the underwriters are certified, they are able to make decisions about the loan process for people who need loans.
However, some lenders may use an automatic underwriter. This technology will complete the underwriting process as other underwriters do, but there is more room for error. There is more room for error with a machine because part of the underwriter's job is to look at all the extenuating circumstances that surround a person's financial situation. A computer generated system may not be able to understand some of the unfortunate situations that need more consideration. So, while some may say that underwriters are becoming out-dated by machines, that claim holds little merit in the mortgage loan world.
Underwriters are aware at how important their jobs are. They are sometimes all that stands between a family and their new home. Underwriters do not take this responsibility lightly, that is why there are schools that are designed to teach them everything they need to know.