A Mortgage Processor will assemble, administrate, and process your loan application before it goes to the loan underwriter. The mortgage application is a tedious process with lots of paperwork included. Hiring a good-rated mortgage processor will make the process seamless.
What is a Mortgage Processor?
A mortgage Processor is an individual who is in charge of gathering and verifying any data related to the mortgage application. A mortgage processor is also known as a loan processor. Furthermore, they make sure that all the necessary documents and financial data are accurate and complete.
The mortgage processor will act as a middleman between the borrower and the lender. They would collect the documents like bank records, financial statements, etc from the borrower.
These loan processors would get the title copy or property appraisal from the seller or the real estate agent. After collecting all the necessary documents he would process the mortgage application.
What Does A Mortgage Loan Processor Do?
A mortgage processor has various tasks to accomplish in a loan process. Let’s see some of the typical duties:
- Borrower’s verification: The processor gathers the borrower’s personal information, like the credit score, employment history, etc, This information is collected to determine the borrower’s loan eligibility.
- Review credit reports: The processor will review the credit report in order to determine the borrower’s ability to repay the loan.
- Gather documentation: The processor would collect the documentation from the borrower, such as bank statements, tax filing, and other financial records. With the help of these documents, he would be able to get the maximum mortgage limit for the borrower.
- Property valuation: The processor gets the property appraisals and title searches from the seller or the real estate agent. These documents would help to figure out any legal issues and determine the actual property value.
- Prepare loan file for underwriting: The processor prepares the loan file for underwriting after collecting all the relevant documents.
- Communicate with borrowers and agents: The processor maintains transparency with the borrower and estate agents, about the loan progress.
Loan Processor Vs. Underwriter
Let’s find out the key differences between the loan processor and the underwriter.
Loan processors collect and verify the borrower information, ordering appraisals and title searches. They work closely with borrowers, real estate agents, and other parties involved in the transaction.
While underwriters, evaluate the borrower’s financial information, credit score, and property appraisal. Based on the evaluation the underwriter determines the creditworthiness and ability to do the monthly payments. Based on this information, the underwriter will make a final decision on whether to approve the loan or not.
To put it another way, underwriters analyze and assess the information that loan processors collect and decide to approve the loan.
Loan Officer Vs. Loan Processor
A Loan officer will help borrowers find a suitable mortgage loan and guide them in their application. They also collect and verify borrowers’ information and prepare for loan submission.
Loan processors are responsible for reviewing and verifying the information provided by the borrower and preparing the loan file for underwriting. They collect the necessary documentation, order appraisals, and title searches, and ensure that all of the information is accurate and complete.
In other words, loan officers support borrowers to get a mortgage, while loan processors help to get the file ready for underwriting.
To become a loan processor, you typically need to have a high school diploma or equivalent, and some relevant work experience or education in the field.
How To Become A Mortgage Processor?
See the below steps to become a loan processor
Step 1 – Obtain a high school diploma or equivalent: High school diploma is the minimum educational requirement for any profession. Even for becoming a loan processor, you need to acquire its certification
Step 2 – Work experience: Acquiring relevant work experience would give you good knowledge and exposure within this field. Working as a loan officer, loan assistant, or administrative assistant in a lending environment would add to its value.
Step 3 – Degree certification: Consider obtaining a higher degree in a related field such as business, finance, or real estate. It will add value to your profile. position.
Step 4 – Familiarize with loan processing technology: All the loan processors use high-end technology in their day-to-day profession. Hence, understanding the tech world and using related software will be a value add to your profile.
Step 5 – Strong communication skills: Effective communication skills are necessary for every professional and so as a loan processor. They must also be highly organized and able to manage multiple tasks simultaneously.
Step 6 – Apply for loan processor works: Start applying for loan processor positions once you gained relevant experience and knowledge. Consider applying for the profile at banks, credit unions, and other lending institutions.
The Bottom Line
Overall, the mortgage loan processor plays a critical role in the mortgage lending process by ensuring that all the necessary information is gathered and verified so that loans can be approved in a timely and efficient manner.
Frequently Asked Questions
How much do mortgage processors make?
The mortgage processor's pay depends on various factors, such as their level of experience, the size and location of the company, and the region or state where they are employed.
How quickly should you provide documents to mortgage processor?
You need to provide the documents as soon as possible once you decide on applying for the mortgage.
Do mortgage processors have to be licensed?
Every state would have its own requirements. You can check with your state's rules and regulations. But it's advisable to get a license which will increase your credibility.