Underwriting Basics for Real Estate Professionals 2CE

This comprehensive two-hour class is tailored to enhance the competency of real estate professionals. This course provides an introductory understanding of the key facets of underwriting, sometimes known as the “Four Cs”: Credit, Cash, Capacity, and Collateral.

We will pull back the curtain of the underwriting process and even debunk some often-misunderstood topics. The ‘Credit’ segment gives a primer on credit analysis, and how underwriters review credit challenges. The ‘Cash’ section focuses on the evaluation of a borrower’s liquidity, exposing participants to processes like reviewing bank statements and validating sources of funds. The third segment, ‘Capacity’, delves into assessing a borrower’s ability to repay a loan. Participants will learn how to analyze income, employment stability, and debt-to-income ratios. Lastly, the ‘Collateral’ section elucidates the process of evaluating property value, including techniques involving appraisal reviews.

In addition to elaborating on these core pillars, the course offers practical insights and experiences from a former underwriter. Participants earn Continuing Education credits upon completion of the class. This class will help you better understand critical lending practices and allow you to be a better resource for your clients.