What should I know about the mortgage application process?
Wednesday, June 10th, 2009
Mortgage application process explained
The mortgage application process is a multi-tiered process that typically involves more than one mortgage professional working with your application. Although many lenders have streamlined the process to involve fewer people, many mortgage lenders still have many people involved from the receipt of the application to the actual funding of the loan.
To start things off, a mortgage consultant typically receives your application and reviews your options with you while also ascertaining your creditworthiness. If your application is approved, the file then moves on to a mortgage processor, whose primary function is to collect all the necessary documents from you while preparing you for closing.
A mortgage underwriter does a final review of the application to make sure that there is nothing amiss, and a mortgage closer prepares and sends all the necessary documents to the attorney or closing agency to conclude the process.
Some mortgage lenders have managed to train their employees effectively enough to where one or two people manage the entire process for each application, but some lenders feel as though several people involved increases the odds of catching any problems before the loan goes to closing.
Although the specifics from step to step will vary from lender to lender, the basic process will almost always be the same across lenders. Be prepared for a lengthy process that will involves a lot of financial verification and fact checking.