What does a Loan Processor do?
Published 3 min read
A loan processor is responsible for collecting and verifying a borrower's documentation in order to prepare them for approval for a loan. This may include reviewing credit reports, employment history, and tax returns. The loan processor will also calculate the borrower's debt-to-income ratio to determine if they are eligible for the loan.
Loan Processor job duties include:
- Verify and collect customer information, including employment history, credit scores, and debt-to-income ratios
- Review loan applications for completeness and accuracy
- Request additional documentation from applicants as needed
- Calculate estimated loan payments and compare to borrowers’ incomes to ensure affordability
- Prepare loan packages for submission to underwriting department
- Work with underwriters to obtain final approval on loans
- Coordinate loan closings with borrowers, real estate agents, and attorneys
- Disburse loan funds and ensure all post-closing conditions are met in a timely manner
- Maintain updated records of loan status throughout the process
Loan Processor Job Requirements
Loan processors typically need at least an associate's degree in finance or a related field, although some jobs may only require a high school diploma or equivalent. Many loan processors also become certified through organizations such as the Mortgage Bankers Association. In addition to formal education and certification, most loan processors have several years of experience working in the mortgage industry.
Loan Processor Skills
- Time management
- Communication
- Organization
- Prioritization
- Customer service
- Data entry
- Microsoft Office
- 10-key
- Typing
- Detail oriented
- Accuracy
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How to become a Loan Processor
A loan processor is a professional who works with mortgage lenders to prepare and process loans for borrowers. The loan processor is responsible for collecting and verifying the borrower’s financial information, as well as preparing and submitting the loan application to the underwriter.
To become a loan processor, you will need at least a high school diploma or GED. Some processors may have an associate’s degree in business administration or a related field, but it is not required. Mortgage lenders will provide on-the-job training for new processors.
There are several qualities that will help you succeed as a loan processor. First, you must be highly organized and detail oriented, as you will be dealing with a large amount of paperwork on a daily basis. You must also have excellent communication and customer service skills, as you will be interacting with borrowers and lenders on a regular basis. Finally, you must be able to work well under pressure and meet deadlines, as the loan processing process can be quite time-sensitive.
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