The processing of loan documents can take anywhere from a few days to a few months, depending on who is applying and the circumstances involved. The process can be simple or it can be very complex.
Whether the loan is originated due to the sale of a property, a refinance, or the adding of a junior lien, called a second mortgage or second trust deed, the process is complex and time consuming. Many people take part in the processing of loans, most in different but related aspects of the industry, all with different job functions that make the end results successful.
If the loan is due to the sale of a property, at least one, and in most cases two or more realtors are usually involved. They are the ones who bring buyers and sellers together to begin the process. If the loan is for a refinance or second loan, realtors may not be necessary, unless they are taking on the role of a mortgage broker. In some states, attorneys are used to handle the purchase or sale the sale of property.
The appraiser gives a written opinion as to the value of the property that the loan is to be given on. The appraiser takes pictures of the subject property, as well as comparable properties, and uses a certain methods and formulas to determine a specific value.
Regardless to what type of loan the borrower is trying to qualify for, an escrow is necessary. An escrow is considered to be a neutral third party to the transaction. An escrow officer opens the escrow and makes sure that all legal documents necessary to close the escrow are recorded and filed where necessary. The escrow officer keeps records of all monies involved in the escrow during the process and all monies that are paid out at the close of the escrow, and then issues closing statements to all parties involved.
The loan officer represents the lender throughout the process. The loan officer does the initial interview of the borrower and takes the loan application. Once the loan application is taken, the loan officer helps gather documentation and information that will be needed to process the loan.
The loan processor gathers all the pertinent information needed to make sure that the borrowers information package is complete, such as employment verification, credit report and credit scores, tax documentation, check stubs, bank statements, and any other information that makes the underwriting process go smoothly.
The underwriter is the key to the whole process. Once the processor submits the borrowers completed loan application and package to the underwriter, it is up to the underwriter to approve or reject the application. If the underwriter looks at the loan application package and feels comfortable with how the documentation is presented, the loan will be approved and the borrower will get the loan.