3 min read

Oct 2021

How Atlantic Bay Underwriters Look at Loans (And Why It Matters)


How Atlantic Bay Underwriters go the extra mile to help you

What underwriters look for in your financial profile

The benefits of Upfront and To-Be-Determined Underwriting


How Atlantic Bay Underwriters go the extra mile to help you

What underwriters look for in your financial profile

The benefits of Upfront and To-Be-Determined Underwriting

At Atlantic Bay, we take great care in analyzing your loan needs to find a successful solution. A critical (and caring!) part of that team is the Underwriter. Let’s take a closer look at how our Underwriters review your loan and work hard to get you to the closing table.

What is an Underwriter?

An Underwriter is a financial professional who verifies your credit, income, assets, and other information to determine if you will be approved for a loan. They look at what is known as the “three C’s: credit (how well do you manage debt?), capacity (do you have the money to make payments both now and in the future?), and collateral (is the market value of the home enough for the loan, and can the lender recover the unpaid balance in case of default?). If you are an eligible loan candidate, the Underwriter will then provide conditions you need to meet and will work with the Mortgage Banker to communicate those needs to you.

Our Underwriters don’t just look at the black-and-white of a file; they look at the big picture. Our customers are people, not just numbers, and we want to do everything we can to give them a path forward to getting the loan they need.

Patty Brown, Atlantic Bay Vice President of Underwriting

How do our Underwriters Look at Loans?

Atlantic Bay underwriters primarily want to answer two questions: does the loan meet agency guidelines (FHA, VA, etc.), and will you be able to pay back the loan? To determine these qualifications, underwriters look at many facets of your financial profile, for example:

  • Credit history: Underwriters look at credit scores and reports for payment history, length and type of credit, how much credit you use, how much credit is available, and how many times other lenders and creditors have pulled your credit information.

  • Income and employment: Underwriters study documents like paystubs, W2s, and tax returns to verify and ensure your income and employment/business are stable and likely to continue in a positive direction.

  • Debt-to-income ratios: The DTI is a percentage that demonstrates how much money you spend each month versus your income. The underwriter wants to make sure you will have enough money to pay for the mortgage, taxes, and insurance.

  • Savings and assets: You will need to provide financial documents like bank statements to prove you have good and valid spending habits and enough cash on hand for a down payment and closing costs if necessary.

  • Payment shock: Taking on a new monthly mortgage payment is a BIG commitment. A borrower who, for example, has lived rent-free with their parents may not be able to afford a sudden mortgage payment. The underwriter ensures that the loan is affordable and your spending habits can sustain the monthly payments long-term.

  • Appraisal: The appraisal confirms that the home’s value aligns with the purchase price. It takes into account the size, location, condition, and features of the property, as well as comparable homes in the area. The Underwriter wants to ensure that your loan doesn’t exceed the property’s value so that if you default, the lender can get their money back.

What is the debt-to-income ratio (DTI)?


The percentage of your gross monthly income that is used to pay your monthly debt and determines your borrowing risk.

TBD Underwriting

Now here’s something that really sets Atlantic Bay Underwriters apart: To-Be-Determined Underwriting. This valuable program offers you a conditional approval that positions you for a quick, seamless close when you find your perfect home—no purchase contract or even an address necessary! TBD takes away the guesswork because you know exactly how much you qualify for before home shopping even begins. It’s the next best thing to a cash offer!

How Can You Help the Underwriting Process?

Help us help you! Be sure to submit all your requested documents as quickly and thoroughly as possible. Underwriters may reach out for additional information, so responsive buyers will get their loan answers faster. And remember not to change jobs, make any expensive purchases like furniture or cars, or take out any new lines of credit during the loan process. Finally, once you have found the home you want, immediately start shopping for home insurance quotes (not having one can really slow things down!).

Atlantic Bay is always here for you, be it underwriting or any part of the loan process and beyond. Contact one of our Mortgage Bankers today!