Loan processor: What a mortgage loan processor does
A loan processor works with the mortgage banker on your loan application when you’re buying a home. Learn about their role in the loan process.
When you apply for a loan, once your application is submitted to the mortgage banker, it would also go to the mortgage loan processor at the same time.
What does a loan processor do?
• The loan processor would first review all your financial documentation and get projected expenses associated with the home you’re looking to buy. He/she will look at the type of mortgage and property information.
• The loan processor would then verify your information by contacting credit companies, your employer, and also get in touch with an appraiser.
• A loan processor also makes sure that all your paperwork is completed correctly before handing it off to an underwriter. It is important that a loan processor knows what the underwriter will be looking for in your application, so there are no discrepancies.
• The underwriter will make the initial lending decision, which will be communicated to the loan processor. The loan processor will then complete a final audit to ensure everything is in order before sending your file to closing.
Ashley, a loan processor, explains the typical timing of the process: “When things are organized, the normal process takes about 35 to 40 days; and with all the documents and everything, you know, organized and everything set into place and how it should be, the process can be done in 25 to 30 days”.
ASHLEY: On a day to day basis, the processor is — I want to say it’s the glue for the process. You know, we work with the underwriters, the mortgage bankers, the title company, the closers. We work with the whole group that’s connected to the process.
MATTHEW: Once the application is submitted it will go through basically a pre-application status where they’ll review the file to make sure all the initial items that need to be there are actually there. That’s the point, once it gets through that review that would be when I would obtain the file.
MATTHEW: I will also complete a similar review to make sure all the items that I feel need to be there are there, to make sure that we are presenting a full and complete application to the underwriter once they review it.
MATTHEW: At that time the underwriter will review all of the documentation, whether it be asset or income documentation and make an initial lending decision based on that. And then at that point the underwriter will present that decision to me.
MATTHEW: The mortgage banker and myself will reach out to the borrower, discuss whether it be approval or a suspense item or whatever the decision may be, and then we go back and forth with the underwriting department until we satisfy all of the items which the underwriter wishes to review, until we have what we call a final approval.
MATTHEW: And at that point, a final approval, I move forward to an audit process just to make sure that everything that needs to be in the file is in the file and everything matches our documentation as well as in the computer system. That way we’re presenting a full and complete file to the secondary market, whether it be Fanny Mae or Freddie Mae or FHA.
ASHLEY: When things are organized, the normal process takes about 35 to 40 days; and with all the documents and everything set into place and how it should be, the process can be done in 25 to 30 days.