How to Process a Mortgage Loan Application
A number of individuals are involved in the mortgage loan process, from application to closing. In the lender's office alone, there is a lender, a processor, an underwriter and a closer. The processor takes the application from the lender and uses the information gathered to create a full loan package to send to the underwriter, who makes a decision on the loan.
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Instructions
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Check your underwriter's checklist for a list of all applicable documents needed to process the loan. Make sure to send the items in the order listed on the check list.
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Input the application information into the loan database. Include copies of the original application, two years tax returns, two months pay stubs and two months bank statements for each loan.
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3
Collect all signed disclosures from the borrower and input those into the loan file as well. Make sure each page is signed and dated by all borrowers.
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4
Calculate the important ratios: debt to income and loan to value to ensure that the borrower meets the qualifications of the loan. Return the file to the lender if the borrower does not meet the loan qualifications.
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Order the appraisal and title information, if the borrower meets the loan requirements.
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Submit the loan to the mortgage underwriter, if all documents are complete and included in the file.
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Tips & Warnings
In addition to a basic underwriting checklist, a good processor should have a different checklist for each loan product offered by the lender. Each loan requires different documentation and disclosures, and the processor should be aware of each difference.
Processing more than one file at a time can lead to confusion and errors. Complete one file as much as possible and then move onto the next.
