17 Mortgage Underwriter Interview Questions and Answers

Mortgage underwriters are the people responsible for ensuring that mortgage applications meet the lending criteria of the financial institution. The underwriter is the last line of defense before a loan is approved or denied. They are also responsible for recommending the terms and conditions of a loan, and for ensuring that the loan is in the best interest of the financial institution.

Answering mortgage underwriter interview questions may seem daunting, but if you come prepared, you’ll be able to showcase your skills and knowledge. In this guide, we’ll provide you with some common interview questions and answers for mortgage underwriters, so you can be one step closer to landing the job you want.

Are you familiar with the types of mortgage loans available?

The interviewer may ask this question to see if you have experience with the types of loans they offer. If you don’t, it’s important to show that you’re willing to learn and adapt to their lending process. You can answer honestly about your knowledge of mortgage loans and how you would go about learning more about them.

Example: “I’ve worked in a few different lending institutions throughout my career, so I’m familiar with most loan types. However, I am always open to learning new things. I would spend some time researching the types of loans offered by your company before starting work here.”

What are the primary factors you consider when underwriting a mortgage loan?

This question allows you to demonstrate your knowledge of the mortgage underwriting process. You can answer this question by listing the primary factors that influence your decision to approve or deny a loan application.

Example: “The first factor I consider is the borrower’s credit history. If they have a good credit score, it shows me that they are responsible with their finances and will likely be able to make payments on time. The second factor I look at is the borrower’s debt-to-income ratio. This tells me how much money they owe versus how much money they earn each month. A low debt-to-income ratio indicates that they can afford the monthly payments on a new mortgage. The third factor I examine is the property itself. I want to ensure that the home is in good condition and appraises for what the borrower says it does.”

How would you rate your written communication skills as a mortgage underwriter?

This question is an opportunity to show the interviewer that you can write clearly and concisely. Use examples from your experience to explain how you would rate your written communication skills, and what steps you take to improve them if necessary.

Example: “I have always been a strong writer, but I still make it a point to proofread my work before submitting it for approval. In fact, I often ask others to review my work as well so they can provide me with feedback on any areas where I could improve. This helps me ensure that all of my writing is clear and easy to understand.”

What is your experience working with mortgage loan applications?

This question can help the interviewer understand your experience level and how you’ve used it to benefit past employers. Use examples from your previous work history to highlight your skills, knowledge and abilities in this role.

Example: “In my last position as a mortgage underwriter, I worked with clients who were looking for loans that fit their individual needs. I helped them through the application process by explaining what documents they needed to provide and when they should expect to receive information about their loan status. This helped me build strong relationships with clients and provided them with valuable insight into the loan approval process.”

Provide an example of a time when you identified a risk in a mortgage loan application and took action to mitigate the risk.

An interviewer may ask this question to learn more about your risk management skills and how you apply them in the workplace. When answering, it can be helpful to provide an example that highlights your ability to identify risks and take action to mitigate them.

Example: “In my last role as a mortgage underwriter, I noticed that one of our clients was applying for a loan with a high interest rate but low credit score. This is something we typically avoid because it could lead to higher default rates on the loan. To mitigate this risk, I spoke with the client to understand their financial situation better. They told me they were expecting a large inheritance from a family member, which would help them pay off the loan after receiving it. After speaking with the client, I decided to approve the loan application.”

If you had to choose, which area of mortgage lending do you enjoy the most?

This question is a great way to determine if the company you’re interviewing with values your specific skill set. It’s also an opportunity for you to show that you enjoy what you do and are passionate about helping others. When answering this question, try to focus on the aspects of mortgage lending that most interest you.

Example: “I would have to say that I love working with clients who are first-time homebuyers. There’s something so exciting about helping someone achieve their dream of homeownership. I’ve worked with many clients in this situation, and it always makes me happy when they call or email me after closing to tell me how much they love their new home.”

What would you say is your greatest strength as a mortgage underwriter?

Employers ask this question to learn more about your personality and how you would fit in with their team. They want to know what makes you unique as a candidate, so try to answer honestly and highlight a skill that is relevant to the position.

Example: “My greatest strength as a mortgage underwriter is my attention to detail. I am very organized and methodical when it comes to reviewing loan applications, which helps me ensure that I don’t miss any important information. In my last role, I was able to help a client secure a home loan despite missing some key documentation because of my thoroughness.”

How well do you manage your time and prioritize tasks?

Time management and prioritization skills are important for mortgage underwriters because they help you meet deadlines, stay organized and ensure that your work is accurate. When answering this question, explain how you use time management tools to keep track of tasks and set goals for yourself.

Example: “I have a calendar where I write down all my appointments and deadlines. This helps me manage my time well by allowing me to see what’s coming up in the next few weeks. In addition to my calendar, I also use a task manager app to create lists of things I need to do each day. For example, I might make a list of pending applications, which allows me to check them off as I finish them.”

Do you have experience working with a mortgage lending software?

The interviewer may ask this question to see if you have experience using the software they use at their company. If you don’t, it’s okay to say that you’re willing to learn new software and adapt quickly.

Example: “I’ve worked with several different mortgage lending software in my career, but I’m always open to learning new systems. I find that I can adapt to most systems fairly easily because of my attention to detail and ability to follow instructions well. In fact, when I was working for a smaller lender, we had to switch our system twice within one year due to updates from the main provider. I learned both systems very quickly and helped other team members do the same.”

When reviewing a mortgage loan application, what is the first thing you do?

This question is an opportunity to show the interviewer that you have a process for reviewing mortgage loan applications. Your answer should include steps and procedures, such as how you organize documents or what your first impression of the application is.

Example: “The first thing I do when reviewing a mortgage loan application is check the applicant’s credit score. If it’s too low, I’ll look at other factors that could be affecting their score, like late payments or high debt-to-income ratios. Next, I review the income statements and tax returns to make sure they’re accurate and complete. Then, I verify the employment information and ensure there are no gaps in employment history.”

We want to ensure our borrowers have the best experience possible. How would you go about doing that as a mortgage underwriter?

This question is an opportunity to show your interpersonal skills and customer service orientation. It’s important for mortgage underwriters to be able to communicate effectively with clients, so it’s helpful if they can make the process of applying for a loan as easy as possible.

Example: “I would want my borrowers to feel like I’m always available to answer their questions or concerns. To do this, I would ensure that I have all the information needed before reaching out to them. This way, I could respond quickly to any questions or concerns they may have. I would also try to keep the application process as simple as possible by providing clear instructions and explanations.”

Describe your process for verifying a borrower’s employment and income.

The interviewer may ask you to describe your process for a specific task, such as verifying employment and income. This question can help the interviewer understand how you apply your knowledge of mortgage underwriting to complete important tasks. In your answer, try to explain what steps you take when completing this task and how you use your experience to make decisions.

Example: “I always start by confirming that the borrower’s employer is listed on their credit report. If it isn’t, I call the company to confirm they have an employee with the same name and contact information as the applicant. Then, I verify whether the company has filed all necessary paperwork with the state government. Next, I check the applicant’s work history to ensure they haven’t changed jobs too frequently or worked at multiple companies at once. Finally, I compare the applicant’s current salary to their previous salaries to ensure there aren’t any large discrepancies.”

What makes you stand out from other candidates for this position?

Employers ask this question to learn more about your qualifications and how you can contribute to their company. Before your interview, make a list of all the skills and experiences that qualify you for this role. Focus on what makes you unique from other candidates and highlight any certifications or training you have.

Example: “I am passionate about helping people buy homes. I also understand the importance of following regulations when underwriting mortgages. In my last position, I helped clients find loans with low interest rates and fixed terms. This experience has given me valuable insight into which loans are best for different types of borrowers.”

Which areas of mortgage lending do you want to learn more about?

This question can help the interviewer determine your level of interest in learning more about their company and its products. It also shows that you’re willing to put in extra effort to improve your skills as an underwriter. When answering this question, try to identify a skill or area of mortgage lending that you don’t have much experience with yet. Explain how you would like to learn more about it and what steps you would take to do so.

Example: “I’ve been working as a mortgage underwriter for five years now, but I still want to continue improving my knowledge of the industry. I’m especially interested in learning more about FHA loans because they are becoming more popular among homebuyers. I’d like to understand the differences between FHA loans and other types of mortgages better so I can provide excellent customer service.”

What do you think is the most important aspect of underwriting a mortgage loan?

This question is an opportunity to show your interviewer that you understand the role of a mortgage underwriter and how it impacts the overall process. Your answer should include a specific skill or quality that you feel makes you qualified for this position.

Example: “I think communication is the most important aspect of being a mortgage underwriter. I am always in contact with clients, real estate agents, loan officers and other members of my team throughout the entire process. It’s important to me that everyone feels comfortable reaching out to me if they have any questions or concerns about their loans. This helps ensure that we can address issues before they become larger problems.”

How often do you underwrite mortgage loans on average?

This question can help the interviewer understand how much experience you have underwriting mortgage loans. It can also show them your work ethic and commitment to the job. When answering this question, it can be helpful to mention a specific number of loans you’ve underwritten in the past.

Example: “In my last position as a mortgage underwriter, I averaged five mortgage loans per week. This was an increase from when I first started working there, where I only had one loan per week. However, over time, I gained more experience and learned new strategies for underwriting loans. Now, I’m able to complete up to 10 mortgage loans per week.”

There is a discrepancy in a borrower’s employment information. How would you handle this?

This question is an opportunity to show your problem-solving skills and ability to work with clients. Your answer should include a specific example of how you handled this situation in the past, along with what steps you took to resolve it.

Example: “In my previous role as a mortgage underwriter, I had a client who was self-employed but failed to report their income for two years. When I asked them about it, they said that they were having financial difficulties at the time and forgot to report their income. They provided me with proof of their income from those years, which helped me approve their loan application.”