In real estate and finance, underwriting refers to the process of evaluating and assuming financial risk in connection with a loan or insurance policy. It involves analyzing the qualifications of a borrower, the value of the property, and other relevant factors before approving a transaction.
Underwriting also means insuring against loss or providing a financial guarantee. In lending, the underwriter determines whether to approve a loan and under what terms, while in insurance, the underwriter assesses risk and sets coverage conditions.
