What does it mean to "underwrite" a loan?

Underwriting a loan refers to the process of evaluating a loan application to determine whether it meets the financial criteria set by the lender. This involves assessing the borrower's creditworthiness, income level, employment history, and overall financial health, as well as the value of the property being financed. The underwriter's goal is to analyze the risk of lending money to the applicant and to ensure that the loan adheres to the lender's guidelines.

While the other options pertain to different aspects of real estate and finance, they do not relate to the underwriting process. Listing a property for sale focuses on marketing and sales, performing routine maintenance involves property management, and providing post-sale ownership services refers to assisting homeowners after a sale has been completed. In contrast, underwriting is a critical step in the loan approval journey that helps protect lenders from potential losses by evaluating the associated financial risks carefully.