You have applied for your mortgage, your loan officer collected all your information, now your loan is in processing. What does that mean? What does a loan processor do? It does vary by company and actually by loan officer.
A loan processor can be your best friend – they collect all the information you gave your loan officer and verify it. They may pull credit reports and order title work and appraisals. Some just get income and asset verifications. Some pull tax transcripts and other documents required for underwriting. A loan processor works with you – even if it’s behind the scenes – and with your loan officer. They are the ones that get your file ready for underwriting.
Some of the tasks for a loan processor are:
- Collect all the information needed to approve a loan
- Make sure everything is entered correctly into the lender’s IT systems
- Verify information through documents you supply
- Make third-party checks with credit bureaus, employers, accountants and so on
- Order an appraisal of the home
- Obtain title insurance and flood insurance (if needed)
- Ensure the compliance of your case with regulatory requirements and internal policies
- Ensure the loan stays on track to close on time
- Submit your file to underwriting
Sometimes borrowers think that processors (and underwriters) are asking for more than they need to – the reality is we (including loan officers, processors and underwriters) would rather not have to get too much documentation – remember we have to read through it all! But we have to satisfy investors and follow guidelines set by Fannie Mae, Freddie Mac, FHA and VA. There are more compliance rules in place than ever before. Sometimes just one more piece of information can be the difference between a denial and an approval.
Processors will work with you and your loan officer to do everything they can to get your loan approved. You may never hear from them or you may work with the processor more than your loan officer – it depends on how your loan officer works. I like to stay in touch with my borrowers but some loan officers would rather hand everything over to their processor. There are times I will ask my processor to follow up with the borrower – it depends on the situation.
Just know that when your loan is in processing, we are doing all the background work needed to your get your mortgage through underwriting and to the closing table on time! If you hear from your loan processor, please understand that they are only doing their jobs! They want to get your loan approved as quickly as you do – and with as few issues for you as possible!!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
