Underwriting is the process of deciding whether to make a loan based on credit, employment, assets and / or other factors.

It is the method a commercial mortgage application undergoes in which creditworthiness, income, property valuation, business revenue and property soundness are all verified by an expert. This process is almost exclusively handled by a third party separate from the loan officer so the review remains unbiased, fair and accurate.

Gross income of a building if fully rented, minus a discount for estimated vacancies. If the property is fully leased this is generally 5.00% or market vacancy.

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