What is A Mortgage Loan Processor and What Do They Do?
What Is A Mortgage Loan Processor?
A mortgage processor helps collect and organize your application paperwork before your loan file gets approved by the underwriter. Once you've completed a loan application, the mortgage loan processor takes over and plays an important role in guiding your loan to the closing table.
What Does A Mortgage Loan Processor Do?
A loan processor helps streamline the process of applying for a home loan by organizing and preparing information for the underwriter to review and approve. The steps can be quite complex, but the loan processor helps keep everything in order, on time and moving toward a successful closing.
Here are some of the core tasks a mortgage processor performs:
They Collect Your Financial Documents
Collecting and ensuring that financial information is in order is a loan processor's most important responsibility. This step includes confirming that the correct documents are present and contain the accurate information the underwriter needs to approve your loan request. This includes tax returns, W-2s, gross monthly income, proof of insurance, bank statements and evidence of assets and debts.
They Analyze Your Credit Report
Loan processors order and examine your credit report by looking for any inaccuracies, late payments and collections. From there, they collect letters of explanation from you for further understanding of your credit history.
Having a good credit score increases your likelihood of getting approved for a home loan. The loan processor looks to see how you’ve handled paying past bills to confirm you can pay off future mortgage payments.
They Order The Title Search And Appraisal
The loan processor will order a title search and a professional appraisal. They’ll want to ensure the home doesn't have any liens and that it’ll appraise for the amount the borrower is requesting for the loan. The underwriter won’t approve the loan if there are liens or the house’s appraised value is lower than the loan amount.
They Track Your Deadlines
Your processor keeps track of certain deadlines of your mortgage application timeline to ensure you close on your house on time and avoid any unnecessary fees. The timeline includes finding a home and making an offer, the home appraisal and completing the mortgage underwriting and final loan.
They Work With The Loan Underwriter
Loan originators work directly with the underwriter to finalize the application process. They’re responsible for transitioning all of the compiled loan documentation to the underwriter for final approval. This is when they may reach back out to you about any discrepancies found that will need to be addressed before the underwriter will give final approval to close.