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What Does a Loan Processor Do?

Once you are moving forward on a home purchase that you plan to finance using a mortgage, you will quickly get to know a number of people who work in that process—your realtor, your loan officer, and your loan processor. Who is a loan processor and how are they different from your initial loan officer?

Paperwork, paperwork, and more paperwork

Getting from a purchase contract to closing, where you officially buy your new home and receive the keys, is a long process with A LOT of paperwork. Fortunately for you, the buyer, there is a dedicated person who will keep all the paperwork organized and submitted for you. This person is the loan processor.

Before loaning you money to purchase your home, your lender wants to know more about you and your finances. You will need to submit proof of gainful employment, such as a W-2 tax form, information about your outstanding debts, such as car loans or student loans, and other information that tells them how able you will be to pay them back. The loan processor collects these documents, makes sure that they are complete, and identifies any additional information or explanation that the mortgage company may require.

Loan officer and loan processor

The loan officer is the person who is supervising the overall mortgage process. They are most likely the initial person that you talked to who told you what terms (rate, approval amount) you could expect from the lender. You can always reach out to them with questions at any point in the process. But it’s helpful to get to know the loan processor as well, since they are the ones compiling the overall package and keeping track of your paperwork.

Purchasing a house is a big step and financial investment. It takes a team of individuals to help you make your dream of owning a home into a reality. The loan processor is a critical member who will help get you to closing and get those keys in your hand.

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