How to Be a Loan Processor
Contents
If you have an interest in the banking and finance industry and are looking for a way to get started, becoming a loan processor may be the perfect fit for you. In this blog post, we will outline what a loan processor does, what skills and qualifications are needed, and the steps you can take to become a loan processor.
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Introduction
Being a loan processor is a very important job in the mortgage industry. The loan processor is the person who makes sure that all of the necessary documentation is in order for the loan underwriter to make a decision on whether or not to approve the loan.
The loan processor is responsible for ordering the following items:
-A credit report
-An appraisal
-Verification of employment
-Verification of deposits
-Tax returns
The loan processor will also review the following items:
-The sales contract
-The mortgage application
-The title information
-Flood certification
-Homeowners insurance declaration page
The Role of the Loan Processor
Loan processors are in charge of making sure that mortgage loan applications are complete and accurate, and that they meet all guidelines. They order appraisals and title reports, and verify that the information on the application is correct.
Loan processors typically work for banks, credit unions, and mortgage companies. Some loan processors are employed by title companies or real estate firms. Some work for themselves as independent contractors.
The role of the loan processor has become increasingly important as the mortgage industry has become more regulated. In the past, loan officers were primarily responsible for ensuring that loans were complete and accurate. Now, loan processors play a key role in making sure loans meet all guidelines.
Loan processors typically have an associate’s degree or certificate in business administration or a related field. They must have strong computer skills and be able to work well under pressure.
Duties of the Loan Processor
The loan processor is responsible for ensuring that the mortgage application is complete and accurate. They obtain and verify all required documentation, including employment history, credit reports, property appraisals, tax returns and bank statements. The loan processor then forwards the file to the underwriter for approval.
The underwriter reviews the file and makes a decision to approve or deny the loan. If the loan is approved, the processor forwards the file to the closing agent. If the loan is denied, the processor works with the borrower to identify any issues that need to be addressed before resubmitting it to the underwriter.
The closing agent coordinates with all parties involved in the transaction, including the real estate agent, title company, escrow company and lender. They also prepare all of the documents required for closing, such asthe promissory note, deed of trust and settlement statement. The closing agent then conducts the closing meeting with the borrower, at which time they sign all of the documents and pay any remaining fees or costs associated with the loan.
Skills Needed to Be a Loan Processor
As a loan processor, you will need to have excellent customer service skills. You will need to be able to handle a high volume of work, as well as be able to meet deadlines. You will also need to possess strong computer skills, as you will be using various software programs to process loans. In addition, you must be detail-oriented and organized, as you will be dealing with a lot of paperwork.
How to Become a Loan Processor
Becoming a loan processor is a great way to enter the field of finance. Loan processors work with loan applicants to gather the necessary documentation to approve the loan. This can be a rewarding career for people who are detail oriented and enjoy working with others.
There are a few steps you can take to become a loan processor. First, you will need to obtain a high school diploma or equivalent. Next, you will need to complete a finance-related degree or certificate program at a college or university. Finally, you will need to obtain experience in the field by working as an intern or entry-level employee at a financial institution.
Once you have completed these steps, you will be well on your way to becoming a loan processor. You can help people obtain the financing they need for their homes, businesses, and other projects. This can be a fulfilling and rewarding career!
Salary and Job Outlook
Most loan processors work full time, and some work more than 40 hours per week. Some companies offer flexible schedules, but most loan processors will have to be available during traditional business hours. Because many loan processing tasks are done electronically, some loan processors may be able to work from home.
Loan processors held about 207,700 jobs in 2012, according to the U.S. Bureau of Labor Statistics (BLS). The industry employing the most loan processors was mortgage and nonmortgage loan brokers, followed by credit intermediation and related activities, and depository credit intermediation. Most other loan processors worked in the banking industry.
The mean annual wage for loan processors was $51,860 in May 2012, according to the BLS. The top 10% of earners made more than $81,590 annually, while the bottom 10% earned less than $30,920 per year. Wages varied by employer and location. For instance, those working in California earned a mean wage of $62,470 annually as of May 2012, while those in Texas earned a mean annual wage of $50,380 during the same period.
