There are different ways of Mortgage Processing at the different lenders in this country, and every step along the way the mortgage processing conducted by the mortgage processor may be similar or vary slightly depending on where and who you are working with. At some lenders, they will require the loan originator or the loan officer to accumulate all the paperwork needed from the borrower and be tasked with reviewing it themselves. After reviewing this paperwork for accuracy it will then be forwarded on to the mortgage processor so they can begin their Mortgage Processing. After receiving this paperwork, the mortgage processor will then double and triple check that all the necessary information has been received and the package is complete. If the package is complete, the next step in Mortgage Processing is for the mortgage processor to forward the file over to mortgage underwriting and a mortgage loan underwriter will be assigned the file. The next step is for the mortgage underwriter to go over every document and develop a list of items needed in order for them to provide a conditional mortgage approval. During Mortgage Processing the conditional approval can have 50+ items included and it is normally up to the mortgage processor to coordinate the obtaining of the documents needed. There is a multitude of items the mortgage underwriter can ask for and some examples are below:
– Copies of identification: Driver’s License, Social Security Cards, and the need for these items to be clear is essential.
– Missing pages from bank statements: Even if you think that you don’t need to submit the “Blank” pages, you will need to.
– Updated Bank Statements and pay stubs
– Complete copies without pages missing of your bankruptcy paperwork
– Letters of Explanation or LOX that explain credit inquiries, late payments, etc.
When working with a mortgage company, it is very important to know their Mortgage Processing procedures so that your file can close on time and without delays. So as a recap, when you are going through the home loan process, there is a distinct flow that all actions should take place, and if you are noticing delays or items done out of sequence or getting repeated, you need to question if your loan will close at all. Under normal circumstances you should see the following flow:
– Mortgage Loan Originator or Loan Officer will collect most of the documents and then turn it over to the Mortgage Processor.
– Mortgage Processor will check over these documents and ensure all the proper information is there before submitting to underwriting.
– Mortgage Underwriter will then review the file and issue a conditional approval.
– File returns to the mortgage processor with the conditions needed to close and she will work with the loan originator/officer to get all required documents and resubmit to mortgage underwriter.
– Mortgage Underwriter reviews file and asks for additional conditions or issues a clear to close or CTC.
If you find that the mortgage underwriter keeps coming back to you with requests for more and more information then you need to questions if your loan is making any progress and if it will close at all. If you want to ensure your loan closes on time, then you need to reach out today and we can begin the process of meeting your deadline. You can call me any time at 888-900-1020, email at email@example.com, or visit www.loanconsultants.org.