What do the underwriter do? And what does first refusal mean on a mortgage?

[Whatagirltodo123]

Out application has gone through to the underwriter but unsure what this means. Also our advisor said we can have first refusal, what does she mean?

The underwriters will look in detail at your finances and income/ expenditure to decide whether you can afford to repay the loan- very standard.
Not sure what first refusal means in this context

The underwriters are the people who make the decision and put their hands in their pockets. The first refusal bit doesn't really make sense. To be given first refusal usually means you are offered it first (whatever it is).

Ah, so even after the mortgage advisor said we clear it, there's still a chance we could get refused.

And the first refusal is the confusing thing. Id understand if we was selling a house bit we're not.

The mortgage advisor probably means that your info meets the criteria set out by the mortgage company but the underwriter will need to review it. If you meet the criteria it’s unlikely there will be a problem.

I think you’ll need to check with them about what first refusal they are referring to.

Mortgage advisors rarely credit score you - underwriter will look at your credit score, income and outgoings etc. They make the decision.
Generally a computer will make a yes / no / maybe decision. Underwriters get the maybes and no s I f there is an appeal.

How likely are they to say no and how do they do the valuation

Really depends on credit score these days.
Consistent late payments could be approved and explained away.
Lots of defaults, missed payments or arrangements - not so much.
Valuation could be an internet check or sending someone (valued) around to have a look.
Income is the usual does however many Ines your salary (3 times for example) cover the mortgage but affordability is add up all your monthly credit card payments, loan payments etc and divide by your monthly income so for example
monthly loans and cc's add up to 250 and you bring in 1000 per month then your affordability is 25% and that is good.
If your outgoings are 750 and your income is 1000 then your affordability is 75% and that is bad.

Ah I see. We only have the standard bills and our car payment which finishes April next year.

You should be good to go then, my only concern would be a lack of credit score (was an underwriter for years), what evidence is there that you can cope with credit? Making the regular payments! Keep us posted!