Roles of the loan processor and the underwriter in a mortgage application


The Loan Processor

Once you turn in your application and choose the kind of loan you would like, your application is going to the individual who will help document your file, the loan processor.

Documentation means that the processor will require private information and documents of your stuff, for example your paycheck stubs and W2s to ensure your income, and items for example bank statements to ensure your assets, insurance information to get homeowner's coverage, and other things that the lending company needs in order to approve your loan.

At this time, the loan processor is focusing on your loan file every day, whereas your loan officer has gone out getting other loans. Your primary contact will function as the loan processor, and will also continue being true with the closing of your loan - that is, unless you will find problems and your loan officer must get involved.

Your loan processor also gathers other documentation that you will not have the ability to provide, like the appraisal of the property, the title report, and then any legal work that might need to become done. The loan processor ensures that the loan is in fact prepared to be listed in the underwriter for approval.

The Underwriter

The underwriter may be the individual who reviews the loan submitted by the loan processor and ensures that it meets lending guidelines. If your particular loan requires USD 10,000 down, then the underwriter will appear for proof that you've USD 10,000 available by reviewing the financial institution statements that you provided. Or maybe the loan program requires that your total regular bills represent under 40 % of your gross monthly income.

Regardless of the loan requires, it is the underwriter that has the ultimate say. The underwriter may also issue loan conditions. A loan is usually approved so long as certain the weather is met. This type of condition may be one more recent pay stub, or loan processor will need to verbally verify your employment by calling your boss or your company's recruiting department.

There might be additional information that the underwriter needs. Probably the underwriter has questions regarding the appraisal that need to become answered. For example, one of the houses used in your appraisal might have been much farther from the house you're buying than is common.

The underwriter might request info on another recent home sale in your neighborhood like a loan condition. If that's the case, your loan officer or processor will call the appraiser and request the extra information. Once you or your loan officer meets your loan conditions and also the underwriter approves the outcomes, your loan then would go to the Document Department.

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This article was sent to us by: Bryan P. Morris at 08072011

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