How to Process a Mortgage
Mortgage loan processors are valued members of any mortgage team. It takes time and skill to know the ins and outs of the mortgage business. You will go through several weeks of training once hired to understand the rules and regulations of the company for which you work.
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Instructions
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1
A client must bring you an application. You will look over that application to make sure it is filled out completely and correctly.
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2
Gather up the necessary paperwork as required by the loan you are processing. For most loans, you will need an application, a copy of the borrower's driver's license, two months of bank statements, two years' tax returns, two months pay stubs, a check for the appraisal and the name of their insurance agent. If it is a sales transaction, you will request a copy of the sales contract as well.
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3
Order the appraisal and request a title search from an attorney or title company, depending on your state. In additon, you will request a credit check on the client and a letter of declaration from their insurance agent.
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4
After the appraisal, title search, insurance declarations page and credit check have been received, you will bundle all of the documentation together with the information gathered in Step 2. All of this will be forwarded onto an underwriter for review.
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5
You will be sent a letter saying the loan is "clear to close" or there are "stipulations" needs to close the loan. If you receive a "clear to close," you send the file to your closing agent. If you have "stipulations," you need to make sure those line items are cleared before you can close a loan. Usually these "stipulations" are more documentation that you need from the client.
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Tips & Warnings
A good processor will have a checklist in each file of the items needed. Once each item is gathered, the item is checked off the list. The documentation required may be much more lengthy than what is listed in this article and can get quite complicated. A system in place helps to keep the processor from confusing loans and losing paperwork.
Remember, if a loan does not close because of your error as a processor, you could lose your job or your company could get sued because of your negligence. Double check everything and if you are not sure about something, ask your lender.
