---
title: "Underwriting: definition | Desert Rock Capital"
url: "https://www.desertrockcapital.com/glossary/underwriting"
description: "Underwriting is the process a lender uses to evaluate a loan application and decide whether to approve it."
---

Credit & approval

# Underwriting
All lending terms
Definition

Underwriting is the process a lender uses to evaluate a loan application and decide whether to approve it. The lender weighs the information provided against its lending criteria.

Underwriting is the assessment a lender performs to measure the risk of a loan and decide whether to approve it, and on what terms. Depending on the lender and product, underwriting may consider factors such as income, employment, ability to repay, existing debts, the credit report or score, and, for a secured loan, the value of the collateral. The process can be manual, automated, or a combination, and the criteria determine who qualifies and the rate, amount, and term offered. Approval, the amount, and the timing of a decision depend on the application and the lender's standards.

Source: [Experian](https://www.experian.com/blogs/ask-experian/what-is-underwriting/). This definition is general educational information, not legal or financial advice.
Related

- [No credit check loans](/services/no-credit-check-loans)
- [Loan FAQs](/faqs)
- [About Desert Rock Capital](/about)
Back to the Lending Glossary
More in
Credit & approval
Credit check
Credit score
Hard vs soft credit inquiry
Ability to repay
Cosigner
Borrow with clarity

## Terms in writing, before you sign.

Desert Rock Capital is a licensed Utah lender with no credit check and no collateral. Apply online or visit a branch in Salt Lake City, Orem, or St. George, and get a straightforward decision, usually in about 30 minutes.
See if you qualify