Underwriting is the process by which an  underwriter analyzes a borrower’s financial credentials and the value of an investment to determine how much risk a lender will undertake if they sanction the borrower a loan.

Real estate underwriter who is a financial expert performs due diligence on income, assets, debt and property details to scrutinize a financing request made by a real estate investor or sponsor.

After analyzing the investment, the underwriter asks for a larger down payment or charges higher interest rates for high risk investments.

This help page and the information contained herein is provided for informational and discussion purposes only and is not intended to be a recommendation for any investment or other advice of any kind, and shall not constitute or imply any offer to purchase, sell or hold any security or to enter into or engage in any type of transaction.

Investing in venture capital funds is inherently risky and illiquid. It involves a high degree of risk and is suitable only for sophisticated and qualified investors.