While holding the post of a loan processor, you might have put together information about the borrower and organize it in the neatest package possible so that the underwriter can easily evaluate and then approve the requested mortgage over here. You will be given the chance over here to open a loan file and verify the information of the borrower and then submit the same package to the underwriter for ultimate decision making. Even though the specified steps are subject to vary based on the employer and state, federal or local laws, the basic steps for processing loan will roughly prove to be the same. Just like the steps associated with debt consolidation ratings, the ones related to processing loans are not that easy as it might seem. But, when you have a reliable expert by your side for help, things might turn to work out in the way it has been planned for sure.
Start by opening the file:
For the first stage, it is important to contact the loan officer over here. This officer is the one to act as an intermediary between the borrower and you. The officer is the one to answer any form of a question you might have about the said loan. In case, you have questions about information, this person is the one you can turn into to help you get the answer.
- It is always mandatory for you to go through the applications and some of the other allotted documents to make sure that you understanding everything about the loan before head starting with the processing over here.
- In case, you have any question over here, it is always better to ask them as soon as it might get possible. Remember that the loan processing section comprises of various laws based boundaries, which you have to follow to get the task covered with ease. If you can do that well thing will work out well for you.
Enter current loan information into computer system:
The lending company or the bank where you are working will have its own section where you need to enter information about the loan you are processing. Make sure to enter the information that you have received accurately and in a complete manner.
- In case, the computer system asks you for some more information, you do not have in the loan file that you received, you can contact loan officer ASAP so that you can get the information you need to fill in.
- The computer system over here is ready to generate deadlines for multiple processing steps right to be completed. It might always send you reminders whenever a deadline is approaching.
Ordering for the credit report of the borrower:
In case the borrower was pre-approved, the loan officer in that regard might already have pulled the credit report of the borrower and include the same in information as sent to you. In case, the answer is negative, you might have to order for one.
- There are high chances for you to get a hands-on credit report from each one of the three major credit report bureaus.
- Even when the loan officer checked report from any one of the bureau, you still have to order for the other two, just to be on the safer side of the legal terms over here.
Order for any appraisal or inspection:
The current mortgage company might require an inspection or even appraisal of the property which is to be purchased before the loan might get approved. Based on the rules of the employer, it might be your responsibility as you are holding the post of the loan processor, to order these options.
- As appraisals and inspections can easily take some time, if you think that you have to order for them then do so ASAP when the processing is going in.
- The underwriter is the one over here to review the present inspect and even appraisal for determining the current value of collateral for the said loan.
- Some of the states might ask for some added requirements like certificates that there are no termites on the said property, and so much more.
Make sure to start your own title search:
The title search associated with the property is designed to reveal whether there are forms of outstanding liens or just other claims to be presented against the title, which can otherwise affect the present value of the said property. There are high chances that the loan officers might have already set wheels in motion for your best ever title search. Or, there are some other instances, when you are held responsible for handling this service of title search on your own.
Checking the income sources of the borrower:
The income of the borrower seems to be the major part of the loan package as it helps in determining the current ability to pack the loan back. Most of the time, you are actually looking at the IT returns of the borrower or pay stubs, which will be going back for a couple of years now.
- The employment and educational history of the borrower can be just as major as the amount of the said income they have.
- For your best example, let’s take hold of this scenario. In case, the borrower is in its mid-20s and has graduated with one professional degree and started working full time in that said field, the income will probably increase with passing years and gaining more experience in this field.
- There are times when you might need added information for the sake of verifying the income of the borrower, in case they are workings self-employed. You have to request this information ASAP to avoid any kind of unnecessary delays in this regard.
Following these points can definitely work brilliantly for you, especially when you are trying to process the loan without miscalculating any of the legal norms. The more you get to research over here, the better information you will come up with.