Processing of mortgage loans it involves a series of steps that are completed over a period of six to ten weeks. It is a very long and intricate procedure for the parties involved. The mortgage loan processor oversees the entire process while the borrower adheres to the instructions given by the lender. Do you want a home loan? If so, you might want to know how to do it. The steps are generally the same, but your lender may have unique standards. There are about four steps that you should expect to complete during the mortgage loan process. They are explained below.
Apply for a mortgage – After locating a suitable lender, you will need to complete a loan application form. These days the process is done electronically on the internet. After you fill in all the blanks, as openly as possible, you will submit it to the mortgage processor. The processor will contact you immediately to direct you to submit certain documents. These include your recent bank statement, pay stub, W-2 forms, and income tax returns if you are self-employed. Paperwork is usually mailed, so mortgage loan processing can be delayed.
Verification of information in documents – When all the documents arrive at the loan processor, the actual processing will officially begin. Documents will be critically checked to ensure they are genuine. To do this, verifiers can call your employer, landlord, bank, or other entities listed on your documents. If you pass the pre-approval step, which means you have met all the requirements, the mortgage loan processing supervisor will send your file to the lender. The title report and appraisal process begins at this step. The lender normally takes about 14 days to validate your documentation, although this may vary. If your home loan is eligible for Loan Prospector, it will be executed faster through automated computer systems.
Securing your loan – This is the approval stage where subscribers will validate their documentation one more time. They may also request your credit reports to determine your creditworthiness. Appraisals and title search reports are also confirmed. The insurer has the maximum authority to reject or accept a borrower’s file. If the file is rejected, it is returned to the mortgage loan processing department with a denial statement. If accepted, it is returned to the loan processor with a pre-closing statement. Any denied file should be reviewed again by the loan officer and processor to see if there is anything they can do to help the homeowner. The automated subscription technique is all the rage today. It requires less paperwork and little time. The computer approves or disqualifies a file while the subscriber manually reviews the documents to identify potential problems.
Closing stage – If both the mortgage processing and underwriting departments are satisfied with your file, the foreclosure will enter the closing stage. The loan officer will initiate the closing stage following all the conditions stipulated by the underwriter. Before long, he’ll get a loan commitment from the lender so he can set the actual closing date for the loan. He may need to consult with the seller of the property and the lender to make this decision. Before closing, it is imperative to compare the Settlement Statement with the Good Faith Estimate statement. The charges described in both documents should be similar. If all goes well, the outsourced home loan processing will come to an end and you will get a home loan.
