Breaking it down

Question 1

What is the general loan process in a mortgage loan?

Answer 1

1. The loan is originated and all required documents are signed and dated in a timely manner including the 1003 and disclosures
2. All income and asset documents as well as proper identification are obtained
3. Credit and liability information is reviewed by the loan processor to verify that the debt to income ratio and loan-to-value are where they need to be before an underwriter reviews the file.
4. The loan is then submitted to underwriting with all required documents
5. The loan is conditionally approved, denied, withdrawn, or other.
6. When a loan is conditionally approved, the loan processor must review all conditions and request any borrower specific conditions to be sent.
7. The appraisal Must be ordered by the loan processor
8. The loan processor must also request for the insurance and title documents
9. A Verification of employment (VOE) needs to be completed either by the lender or the loan processor depending on what the underwriter request. A VOD or verification of deposit is also a document that can be requested by an underwriter in some conditions
10. If the loan is a refinance, a payoff is to be requested for all mortgages on the loan as well as a recent mortgage statement, current homeowners insurance and property tax documents
11. All loan conditions need to be submitted to the underwriter through the lenders portal (website portal) for review.
12. The rate needs to be locked and should be specific to what the borrower needs. 30 day lock, 45 day lock, or 15 day lock if available.
13. Once the conditions are cleared you will be clear to close
14. The loan processor must coordinate the closing date with the title company and request the closing documents to be ordered
15. Once the borrower closes on the loan, the loan processor needs to save all loan documents in a digital format at the least since physical documents can be easily destroyed.
16. A quality control check needs to be completed to make sure all documents are available in case of an audit.
17. The loan processor must verify that all documents are signed and dated properly and that all loan documents are included in the file to be compliant with all federal and state laws.

Question 2

Credit and liability information is reviewed by the loan processor to verify what?

Answer 2

That the debt-to-income ratio and loan-to-value are where they need to be before an underwriter reviews the file.

Question 3

After credit and liability information is reviewed by a loan processor to verify the debt-to-income ratio and loan-to-value are where they need to be then what occurs?

Answer 3

The loan is submitted to underwriting with all required documents. The loan is conditionally approved, denied, withdrawn or other

Question 4

When a loan is conditionally approved what must occur?

Answer 4

The loan processor must review all conditions and request any borrower specific conditions to be sent.

Question 5

who orders the appraisal?

Answer 5

The loan processor

Question 6

After a loan is conditionally approved and the loan processor reviews all conditions and request any borrower specific conditions to be sent the loan processor also orders/request what?

Answer 6

The loan processor orders an appraisal and request for insurance and title documents.

Question 7

What is a VOE

Answer 7

Verification of Employment

Question 8

A VOE needs to be completed by who?

Answer 8

Verification of employment needs to be completed either by the lender or the loan processor depending on what the underwriter request.

Question 9

In some cases what can be requested with a VOE by the underwriter?

Answer 9

Verification of Deposit (VOD)

Question 10

If the loan is a refinance what request is needed?

Answer 10

A pay off for all mortgages on the loan as well as a recent mortgage statement, current homeowners insurance and property tax documents.

Question 11

The rate needs to locked and should be specific to what the the borrower needs. What are the common lock options available

Answer 11

60 day lock
45 day lock
30 day lock
15 day lock

Question 12

What occurs before a loan is submitted to underwriting

Answer 12

1) Loan is originated and all required documents are signed and dated in a timely manner, including 1003 and disclosures

Question 13

What occurs before a loan is submitted to underwriting

Answer 13

1) Loan is originated and all required documents are signed and dated in a timely manner, including 1003 and disclosures.
2) All income and asset documents are obtained. As well as proper identification.
3) Credit and liability information is reviewed by the loan processor to verify that the debt to income ratio and loan-to-value are where they need to be before an underwriter reviews the file.

Then submission to underwriting occurs with all required documents above.

Question 14

what is a 1003 mortgage form?

Answer 14

Also called the Uniform Residential Loan Application.

An industry standard form used by nearly all mortgage lenders in the United states. This form is typically filled out twice during the mortgage transaction.

Once during initial application and again at closing to confirm the terms of the loan. On the form the borrower list all assets and liabilities on the form when attempting to secure a mortgage loan. The form also includes two years of employment history and monthly household income.

Question 15

The 1003 mortgage form also called the Uniform Residential loan applications requires a list of borrowers assets and liabilities, monthly income and monthly expenses to determine what?

Answer 15

Whether he or she can afford the monthly mortgage payments.

Question 16

Borrower assets include what?

Answer 16

Anything that can be used or liquidated to cover loan payment:

• Life insurance policies
• Checking and savings accounts
• Stocks, bonds, mutual funds, or other investments
• IRA, 401(K), or similar retirement accounts

Question 17

What are common liabilities in addition to a mortgage payment to consider for a borrower?

Answer 17

• Car loans
• Credit Card debt
• Student loans
• Open Collection accounts

Question 18

Does the 1003 mortgage form/Uniform Residential loan application require the disclosure of other properties rather they are a second home or an investment property?

Answer 18

Yes requires disclosure of these assets as well as the mortgages tied to them.

Question 19

What is a rate lock?

Answer 19

Means the interest rate will not change between the offer and closing, as long as you close within the specified time frame and there are no changes to the application.

Question 20

Once all loan conditions are cleared you will recieve a clear to close and the loan processor must then do what?

Answer 20

The loan processor must coordinate the closing date with the title company and request the closing documents to be ordered.

Question 21

Once the borrower closes on the loan the loan processor needs to do what?

Answer 21

Save all the loan documents in digital format at the least since physical documents can easily be destroyed.

Question 22

Once the loan processor makes sure there is digital copy of all loan documents a quality check needs to be completed. Why?

Answer 22

In case of an audit

Question 23

On the digital copy of all loan documents the loan processor must verify what?

Answer 23

That all documents are signed and dated properly.

That all loan documents are included in the file to compliant with all Federal and State Laws.

Question 24

The loan processor needs to make sure all loan documents are included in the file to be compliant with what?

Answer 24

Federal and State laws