When you and I first speak together, it’s generally a Q&A sort of thing. You have questions, I have answers. The first is probably to check out mortgage rates to make sure we’re competitive and to get a general fix on the mortgage market. The next is to talk about getting prequalified, get a loan cost estimate to you and talk monthly payments. We’ll work together to find the ideal loan program for you as you submit your loan application. Submitting an official application will trigger a series of loan disclosures along with other important pieces of documentation.
Meet the Mortgage Team
Once the loan application is submitted, your loan file will be handled by different people within the mortgage company. Here are some of those people.
Your loan processor will essentially be the ‘point person’ at the mortgage company office. As the title suggests, this individual will handle the initial intake of your application and help check to see if anything is missing in the file. The processor’s job is to make sure the file is ready to submit to the underwriter. If for example there is only one paycheck stub in the file covering a two week period, the loan processor will request updated stubs covering the most recent 30 day period. If self-employed, the loan processor might discover there still needs to be a new profit and loss statement in the file.
These are all things I’ll disclose to you in the beginning but it’s the loan processor who will review the file after submission. The loan processor will also order additional third party services and documentation to complete the loan package. An appraisal is ordered. So too is title insurance and setting up a settlement date, among a host of others. You’ll be speaking with the loan processor throughout the approval period. Once the file is completely documented, it moves to the underwriter.
The underwriter is the individual that makes sure the submitted loan package meets the guidelines for the requested loan program and that all the conditions listed on the automated underwriting system, or AUS, are properly fulfilled. If the underwriter has questions, the questions will be channeled through the loan processor. You will not speak with the underwriter directly. Once any final questions are answered, the underwriter can be in a position to issue an approval. Most often an approval will be accompanied by certain conditions being met. Typically, this means making sure the credit documents in the file are less than 30 days old. If the loan program needs most recent paycheck stubs covering a 30 day period, but it’s the loan file has been in a ‘preapproval’ stage, it’s likely the paycheck stubs included with the initial submission are older than 30 days.
After the loan is approved and all conditions have been met, the loan then moves to the closing department. It is your closer who will review the instructions from the underwriter and prepares the closing documents for the settlement date. Your closer will send your loan package to your settlement agent who will oversee your signing. The settlement agent will follow the lender’s instructions to the letter. Once everything has been signed, the documents are then transferred back to the lender.
The lender will review the completed loan package and make sure the settlement agent followed the instructions properly. Once that determination has been made, the funding department takes over. It is the funder who will wire the needed funds to create the newly created mortgage. At this stage, the funding department provides the settlement agent with a code, referred to as a funding number, which in essence unlocks the funds from the lender’s account. The loan is now funded and recorded.
Again, I am your primary contact from beginning to end, from our initial consultation to the day your loan funds. But there are other behind-the-scenes people who will assist with your loan approval throughout.