A loan processor prepares mortgage applications by assembling financial documentation and submitting them to a loan underwriter. They also work closely with loan officers and underwriters to help ensure the loan application process is successful.
To become a loan processor, you need at least a high school diploma and some relevant experience in finance or accounting. You may also need a bachelor’s degree in a related field.
Gathering Your Financial Documentation
Gathering your financial documentation is a vital part of the loan process. It includes verifying your Social Security number, income documents, and insurance policies. This is a crucial step to ensure that your financial information is accurate and that you can afford the mortgage payments.
Your financial paperwork tells your lender how much you make, what you owe, and your ability to repay the loan. This information will also determine your credit report and whether or not you will be approved for the loan.
Technically, a loan processors Loganville GA collects and organizes your financial documentation in the format required for each loan program you apply for. This helps the underwriter quickly locate the needed information to approve your application.
A good loan processor can respond promptly to all requests for information. They must pay attention to a request that doesn’t make sense to the borrower or is regulatory or compliance related.
Reviewing Your Credit Report
Your credit report is a collection of information lenders use to determine whether you qualify for a loan. The data summarizes your credit management, including payment history and account balances.
Typically, you’re entitled to one free copy of your credit report each year from the three major credit bureaus.
You’ll check your report for errors and other issues that could negatively impact your credit. These may include accounts you don’t recognize, inaccurate debts and collections, or unaware of late payments.
If you find any discrepancies in your credit report, dispute them with the credit reporting agencies immediately so they can be corrected. You can do this through the credit bureaus’ websites or by phone.
Reviewing Your Statements of Assets and Debts
There are several ways to tell if your business is ready for the big time, but one of the most important is looking at your statements of accounts. Your balance sheet, aka the books, will have the number above, but it’s also worth the time to look at other financial records, such as your inventory and payroll, to see where you stand. Those documents are essential, but the best way to understand your financial position is to discuss them with a seasoned financial expert.
Afterward, you’re better positioned to make the right decisions for your business and bottom line.
Reviewing Your Loan Application
Understanding what lenders look for when reviewing your loan application can help you speed up the process and get the best deal possible. Generally, lenders consider your credit history and your debt-to-income ratio.
A debt-to-income ratio is a number that compares your monthly debt payments to your total income. The lender will use this number to assess how much you can borrow from a bank.
A loan evaluation will also consider your business’s current revenue, past debt, and anticipated future revenues and trends. Additionally, the state of the economy and pending legislation in your industry will also factor into the review process.
A Loan Review audit is an essential management tool for any financial institution to monitor the risk and administration of its most significant asset – the loan portfolio. When an individual institution does not have the necessary resources to maintain a separate loan review department, it commonly outsources this function.