What is underwriting? Underwriting is the process of reviewing the loan package to determine whether it meets the established criteria to approve the loan. An underwriter reviews the loan package, including, the loan application, tax returns, paystubs, bank statements, retirement account statements, contract (if a purchase), title insurance, and appraisal to determine whether the documents will meet the criteria to approve the loan. After the package is reviewed, one of three decisions will be issued: approval, suspension, or denial. If the underwriter issues an approval, it is typically a conditional approval. This means the approval is...