The following came from a lender* many of my buyers have worked with.
What’s Going On During the “Loan Processing” Stage
- Once we have a contract to follow, we complete the loan application with property and contract specifics, price the loan and prepare Good Faith Estimate and Truth and Lending for compliance. Our compliance department must review these documents and approve before we disclosure to our borrowers.
- Disclose loan documents to clients and cover the entire loan process, etc. We need signed documents in order to submit into “Processing.”
- A loan officer stacks all disclosures, income, asset, miscellaneous documents, and specific instructions and sends to our processors.
- A processor then gets to work on the validation of all documents received: She orders title, appraisal (per loan officer instructions), 4506T’s, verification of employment for each employer going back 2 years, verification of deposits, social security number validations, CAIVRS, and any and all research required to validate any pertinent details of a file. **** In most cases it is always best, not to submit a file for underwriting review until all items have been verified and documented. Our processors work very closely with us during this process to either avoid to fix issue that arise during this process. We prefer to deal with them and fix what we can before presenting to our underwriters.
Once We Have an Underwriting “Clear to Close”
- The loan now goes to a final compliance review before the attorney can draw up the closing statements.
*Premier Nationwide Lending