What is a mortgage loan processor? The responsibilities associated with this position depend on the company, but most mortgage processors prepare an approved mortgage loan application for closing by ensuring all necessary documentation is complete and correct.
Applications for mortgage loans must first go through the initial underwriting process to make sure the applicants are fully qualified for approval. Considerations to approve these applications generally include:
- The applicant's credit score and history.
- The amount of the down payment available versus the amount of the loan.
- The applicant's income and employment history.
- The debt-to-income ratio of the applicant.
If the application is approved based on these and other factors, the file is given to a mortgage loan processor who has the responsibility to ensure that everything is ready before the closing date. Depending upon the position structure of the lender, the processor may also get the file ready for the actual closing or may instead prepare the file and then hand it over to another professional in a mortgage closer position.
Piles of Documentation
A great deal of documentation is needed to prepare an approved mortgage application for closing. Applicants may have to prove the amount of their income, the length of their employment, or the amount of assets sitting in deposit accounts. It is the job of the mortgage processor to make sure that all of this necessary documentation is received and is correct before the mortgage loan goes to closing.
Mortgage processors may also ask for tax returns, particularly for those approved applicants who are self-employed. In some instances, there is additional documentation required such as proof that a debt was fully paid or a letter from a relative stating that a sum of money was a gift instead of a loan.
Processing the Mortgage Application
There is more to a mortgage processor's job than merely compiling documentation, although the task of getting all of the necessary documentation together for a mortgage closing can be quite time-consuming on its own. Mortgage processors are typically also responsible for requesting services to complete the application process.
The mortgage lender needs to ensure that the home is worth the amount the seller claims it to be worth. This is a safeguard for the lender to make sure money is not given to a borrower for a home that is not worth the amount of the loan. The mortgage processor may contact an appraiser directly to order an appraisal of the home before the loan can go to closing or they may request that the borrower obtains the appraisal and forwards the results.
If the lender requires a home inspection prior to sending the loan to closing, the mortgage processor will ensure this task is completed before the file lands on the desk of the closer. The cost of the inspection is generally covered within the buyer's closing costs.
The land surrounding the home being purchased must be surveyed and a recent survey must be submitted for the mortgage loan file before the loan will close. The mortgage processor will either request a survey on the land or will review a recent (less than 10 years old) survey to make sure that it is sufficient for the lender's records.
What Is a Mortgage Loan Processor?
A single mortgage file can require a great deal of documentation and actions. So what is a mortgage loan processor? This is a professional who cannot only keep all of the information organized, but who can also make sure that everything is submitted in a timely manner in order to meet the closing date.