Credit glossary
Underwriting
The lender's review of your credit, income, assets and debts to decide whether to approve a loan and on what terms.
For mortgages, underwriting usually starts with an automated system: Desktop Underwriter for Fannie Mae loans or FHA's TOTAL Mortgage Scorecard for FHA loans. Files those systems don't approve, and files with no credit score, can go to manual underwriting, where a person checks the loan against fixed rules. Some lenders won't manually underwrite at all, which works like an overlay.
Your credit score is one input among several. Underwriters look at debt-to-income, explanations for recent inquiries, disputed accounts and any new debts, and a lender may check credit again before closing to catch new accounts. From application to closing, avoid new credit, keep balances steady and answer document requests quickly.
Guides that go deeper
- Getting your credit mortgage-ready in 12 months, month by monthA month-by-month credit plan for the year before a mortgage: what to check, what to fix, what to leave alone, and the timing rules underwriters use.
- What not to dispute on your credit report before a mortgageDisputing accurate items rarely helps, and open disputes can stall a mortgage. How Fannie Mae and FHA treat disputed accounts, and what to do instead.
- Credit score for an FHA loan: the 580 and 500 rules, explainedFHA allows scores down to 500 with 10% down and 580 for 3.5% down, but lenders add overlays. How FHA picks your score and what changes in 2027.
Sources
- B3-5.3-09, DU Credit Report Analysis, Fannie Mae Selling Guide
- Mortgagee Letter 2026-11: Updated Minimum Decision Credit Score Methodology for the Implementation of Alternative Credit Scores, U.S. Department of Housing and Urban Development
- Letter to FHFA on treatment of credit reporting disputes (November 14, 2014), National Consumer Law Center
- What happens when a mortgage lender checks my credit?, Consumer Financial Protection Bureau
This is education, not legal or financial advice. Spot an error? Tell us and we'll fix it.