Who evaluates a borrower's loan application and property appraisal?

The underwriter is responsible for evaluating a borrower's loan application and property appraisal. This critical role involves assessing the risk associated with lending money to the borrower. The underwriter examines various factors, including the borrower’s creditworthiness, financial stability, employment history, and the valuation of the property being purchased or refinanced.

By analyzing the property appraisal, the underwriter ensures that the property’s value aligns with the loan amount being requested, as this impacts the lender's risk. If the appraisal shows that the property is worth less than the amount of the loan, it could indicate a higher risk of default. The underwriter uses this information to make an informed decision on whether to approve or deny the loan application.

In contrast, the other roles listed focus on different aspects of the lending process. For instance, a mortgage broker acts as an intermediary between the borrower and lenders, helping the borrower find the best loan options but not making the final evaluation of the application. A loan officer may assist the borrower with the application process and gather necessary information but does not typically conduct the risk assessment. A credit analyst also evaluates creditworthiness but in a broader financial context rather than specifically related to individual loan applications.