A mortgage processor puts together and handles all the paperwork for your loan before a loan underwriter gives it the thumbs up. They’re a big part of getting your mortgage sorted and making sure everything’s good to go for the final steps.

If you’re buying a home or are already in the process, it’s good to know what a mortgage processor does and how they help out in these critical stages.

What’s a Loan Processor?

A loan processor, or loan clerk, is a financial manager who organizes and gets loan paperwork ready. Their job involves:

• Collecting personal and financial details from loan seekers.
• Checking if the info is correct.
• Helping them fill out forms.

They also figure out interest rates, monthly payments, and closing costs. Plus, they guide customers on loan choices, arrange property appraisals, and keep loan applications and payment records.

 

What Does a Mortgage Loan Processor Do?

A loan processor makes it easier to apply for a home loan. They sort out the steps involved, making it less complicated. Their job is to find a suitable loan that fits your budget and requirements. Here are a few things a mortgage processor does:

They Gather Your Financial Documents

The main job of a loan processor is gathering and checking your financial documents. This means ensuring the proper papers have all the correct info for the underwriter. They put together tax forms, W-2s, how much you earn each month, proof you're insured, bank statements, and proof of what you own and owe.

They Check Your Credit Report

People handling loans check your credit report for mistakes, late payments, or debts. Then, they ask you for explanations to understand better. If you have a good credit score, it boosts your chances of getting a home loan. They want to ensure you've been good at paying bills before trusting you'll handle future mortgage payments.

They Keep an Eye on Your Deadlines

Your loan processor ensures you meet the deadlines when applying for a mortgage. This helps you close on your house when you're supposed to, without paying extra fees. The schedule involves finding a home, making an offer, getting the home appraised, finishing the mortgage paperwork, and getting the final loan.

They Work With The Loan Underwriter

Loan originators work together with the underwriter to finish the application. They gather all the right documents needed for the loan and pass them to the underwriter to get the final approval.

 

What Happens During Mortgage Processing?

When you want a home loan, you'll team up with a loan officer or mortgage broker. They're like middlemen between you and the lender. From the moment you apply for the loan until it's finalized, that time is called "mortgage processing."

During this time, the lender double-checks all your details to ensure everything is correct and all the required information is there. They'll confirm your info, check your credit reports, and set up a home appraisal. Whatever they find out will decide if your loan gets approved or not.

 

Loan Processor Vs. Underwriter

Loan processors and loan underwriters work in mortgage applications but do different things. The processor checks that all your loan paperwork is ready for the application. The underwriter decides if you can handle the monthly mortgage payments and if the loan should be approved.

 

Loan Processor Vs. Loan Officer

Loan officers and loan processors seem similar, but they do different things in the loan process. A loan officer guides borrowers through applying for a mortgage. They suggest suitable loan programs based on the borrower's finances. Once the borrower picks a loan, the details go to the processor, who handles the paperwork. The processor connects the loan officer and the underwriter.

 

How to Become a Loan Processor

To become a loan processor, focus on building a versatile skill set that suits the finance sector. Get hands-on experience through work training and take online finance courses to boost your appeal as a potential hire. Let's go through the steps to become a loan processor:

Step 1: Get Your High School Diploma

Many companies hiring loan processors need you to have at least a high school diploma or GED. Taking English and math classes sets a good foundation for this job. Also, learning computer and office skills through courses can be useful.

Step 2: Get a Degree

Some bosses like to hire people who have an associate's degree in something like banking and finance. A banking degree teaches you the basics of handling money and what banks do to keep money safe and offer financial services. In your classes, you'll learn about banking laws, how loans work, managing credit, spotting fraud, and using automated systems.

Step 3: Finding a Job

You can look for work at banks, credit unions, or mortgage lenders. In 2020, about 208,800 people were loan interviewers and clerks, according to the U.S. Bureau of Labor Statistics (BLS).

The BLS said in 2020 that jobs for loan processors will come up because there's a need to double-check loan applications carefully due to strict rules. More automated systems simplify the job but also affect the number of job openings. On average, you might make around $43,012 in 2021.

Step 4: Get On-The-Job Training

You can learn about special computer programs and how to talk to people better while working. Almost every loan decision uses computers and needs keeping records. If you're off the computer, you'll probably be talking to customers. That means you'll need to be polite and act professionally with them.

Step 5: Advance Your Career

To boost your career, try shifting sideways into different financial service roles. Some jobs might need a bachelor's or master's degree. If you aim to be a senior loan processor, more experience might help, but that could mean getting a bachelor's degree too. If you've got an associate's degree, look for programs that let you transfer your credits toward a bachelor's.

 

What Other Jobs Are Similar?

Bill and account collectors do office tasks similar to loan processors in handling monetary transactions. Loan processors also do many things that bookkeeping, accounting, and auditing clerks do. Though they work less with money, information clerks might still do some of the same jobs as loan processors. They keep records, gather data, and share information.

 

The Bottom Line

Like underwriters and loan officers, mortgage processors are essential in the mortgage process. When you work with a mortgage processor, they help organize your stuff for underwriting and ensure your application stays on track for closing.