A Mortgage loan processor is someone who processes your loan application. A mortgage lender usually needs a substantial loan. Consequently, processing a mortgage involves numerous persons. The loan processor and underwriter will also review your application.
What do mortgage loan processor examine?
Loan processors and underwriters are plentiful. An underwriter evaluates a borrower’s loan application and supporting papers. The mortgage loan processor must verify the application and supporting documents.
Importance
The mortgage loan processor ensures all essential documents and details are present. If you’re missing documents, they’ll contact you. They’ll double-check the information you provide. They also gather information and do duties, so your application is ready.
What do they do?
A mortgage loan processor will examine the following items before submitting your application and data to an underwriter. In addition to assessing document integrity and content, they may check for the following.
Documentation
For a loan, you must be employed to make monthly payments. The processor will call your present employer to verify your employment details. They may check with your employer to ensure you can afford it.
Provenance
The loan processor will review your balance sheet. Include current information for all bank and investment accounts specified on your application. They’ll also look at your loans. The mortgage loan processor may contact you if you don’t have recent statements. Previous reports may be requested.
Leverage
They’ll assess your income and debt to determine your debt-to-income ratio (including loan debt, credit card balances, & expenses). They’ll analyze W-2s, paystubs, bank statements, and tax returns to verify your income.
Homeowners insurance
Mortgage lenders require homeowner’s insurance despite not being required by law. Homeowner’s insurance is necessary for a house loan. The mortgage loan processor will check for homeowner’s insurance.
Evaluations
The lender won’t lend over the home’s value. Lenders order appraisals to ensure houses aren’t inflated. If so, the lender may have trouble recovering the loan sum if the borrower fails because they’d have to auction it for more than it’s worth. Lenders order appraisals.
Order Credit Reports
Your credit report details prior bill payments. It shows if you’ve paid your bills on time and in full, how much you owe, and any red flags (such as previous foreclosures, bankruptcies, or debts that went to collections due to nonpayment). Your credit report determines the lender’s risk and financial responsibility. Loan processors order credit reports.
Payoff order
Only when refinancing would a mortgage processor ask for payoff mortgage information? They’ll contact your current mortgage lender to discover what you owe. This helps the loan processor calculate the monthly charge.
Relationship benefits
Keep a strong relationship with your mortgage loan processor. This means being kind, patient, and available. If they contact you, they may need details. Give it quickly to keep the home loan process rolling.
If you have a good relationship with the loan processor, they’ll help you if complications develop. It may be hard to substantiate if you don’t preserve copies of your alimony checks or deposit them in a different account. The mortgage loan processor may get around this by acquiring copies of your bank deposits.
If you’re nasty when they need additional information, they won’t come up with solutions. Then your loan won’t continue.
Conclusion
Mortgage application and approval are more involved than you might assume. Not just your loan officer can help. Handing your loan application to the processor is a crucial step. You want to avoid having your loan application denied due to a mistake or lack of data and speed up acceptance. In that situation, it’s essential to understand the loan process and work well with your loan processor.
