Purchasing a home is a huge personal achievement but it’s hardly a solitary one. Homebuyers have a dedicated team of mortgage professionals who help them reach their goals and provide support from beginning to end. When considering who’s who in the mortgage process, it’s a good idea to understand each mortgage professional’s role in bringing you closer to your dream of homeownership. We’ve already discussed what your loan officer does, but what about the loan processor? Here are the basics of what your loan processor does.
What is a Mortgage Processor?
A mortgage processor (often called a loan processor) prepares essential mortgage application documents for delivery to the underwriter. Those documents typically include the following:
- Pay stubs
- W-2 forms
- Bank statements
- Credit report explanations
Your loan processor then works with your loan officer to ensure your financial profile fits the guidelines for your specific mortgage program. Since loan processors aren’t licensed, they don’t advise you about loan programs, interest rates, or closing costs. Instead, they organize your paperwork in the required format for your loan program so your underwriter can approve the loan.
Key Responsibilities of Loan Processor
Your loan processor works with your loan officer to ensure essential documents are organized and accurate for the underwriter’s review. The exact process for preparing those documents can vary based on the lender or loan product. However, most will perform some or all of the following key responsibilities.
- Double-checks financial documents for accuracy and legibility.
- Requests documentation based on your credit report, like letters of explanation or court documents, when necessary.
- Requests written verification of employment or bank accounts when required by the underwriter for loan processing.
- Orders title work on the property you’re purchasing and schedules any required home appraisals.
- Works directly with the underwriter to collect any outstanding documents to clear conditions for the loan.
- Keeps loan moving on schedule by focusing on deadlines in the home purchase agreement and helps prepare loan file for closing.
As you can see, your loan processor plays an essential role in obtaining and keeping your loan documents in order to help facilitate a successful closing. Together with your loan officer, who guides you through the loan process, you can rest assured that your dedicated team will help keep you organized and confident about achieving your dream of homeownership.
About Loan Officer, Julie Krumholz from Superior National Bank
Julie Krumholz is no stranger to what goes into the home-buying process for a smooth transition to homeownership. For over 35 years, Julie has been a trusted resource and friend to homebuyers navigating the mortgage process. Julie has worked in processing, closing and loan origination, underwriting, QC auditing and has even co-owned a mortgage brokerage firm! She applies her wealth of knowledge to help first-time and experienced homebuyers bring their homeownership dreams to fruition.
