Which term describes the process of a lender reviewing a borrower's repayment ability?

The process described in the question is known as underwriting. Underwriting is a critical step in the lending process where the lender assesses the borrower's ability to repay the loan. This involves an evaluation of the borrower's credit history, income, employment status, debts, and overall financial situation to determine risk and establish whether to approve the loan application.

This careful assessment ensures that lenders make informed decisions, reducing the likelihood of default. While pre-approval refers to the initial check where a lender investigates a borrower's financial situation to provide an estimated loan amount they qualify for, it does not encompass the full review process that underwriting entails. Origination relates to the process of creating the loan itself, including the associated paperwork, but does not specifically address the assessment of repayment ability. The term "underwriting review" could imply a revisit of the underwriting process, but it is not as widely recognized as the straightforward term "underwriting." Overall, underwriting is a comprehensive evaluation crucial for both borrowers and lenders in the lending process.