What is a mortgage processor anyway?

Mortgage and Lending with Consulting
Mortgage Processor – A way to make sausage? 

Do you need a mortgage processor? What is a mortgage processor anyway? Does it sound like a creative way to make sausage?

Well, we’re not talking about that kind of processor. This one has nothing to do with food but everything to do with you getting a great home mortgage loan. If you want to be a step ahead when it comes to getting your home loan, then you need to know and understand all the steps that are involved in the process. This includes knowing who the mortgage processor is and what their role is.  


There are a lot of things that go into buying a new home. Whether this is your first home, or your fifth, you probably already know that it is a process that takes time and often an entire team of people working together to achieve it. If you are planning to buy a home and you need a loan, you are probably going to go to a lender or mortgage broker. When you go, there will be applications for you to fill out to determine if you qualify for one of their loans.  

Steps of the Loan Process 


There are different steps that go into getting your loan. Become familiar with these steps so that you can recognize them as they occur in your loan process. Common steps include: 
  • Mortgage loan Pre-Qualification
  • Application for the mortgage loan by the mortgage borrower
  • Mortgage loan processing and verification activities
  • Lender and mortgage insurance underwriting
  • Closing of the mortgage loan that follows the Pre-closing

Who is the mortgage processor? 


The mortgage processor,  helps process the loan and the activities that go into completing the loan process. If you are the person applying for the loan, this is the person you will be in contact with quite a bit unless the processor just reports back to your actual loan officer or mortgage representative. The mortgage processor is the one who has the task of running credit checks and verifying other information on the potential borrower.  


The mortgage loan processor will verify all the facts and information that you have included as well as make sure your identity is verified and you are in fact who you are claiming to be. They basically have the “paperwork” end of the mortgage process covered.  


Mortgage loan processing is the most important step in the mortgage loan approval process that decides whether or not your mortgage loan will be approved. So how long does it take to get approved or denied? It varies but generally mortgage loan processing could take place within five to twenty days from the date of application of the mortgage loan. The loan processor will get back to you with the results of your loan application or will contact the representative from the mortgage company to tell you the results of your loan application.  


There are also mortgage finance companies out there that work to help lenders and banks process potential loan applications. In the case that your mortgage company has hired an outside agency to process their loan applications, you will likely not ever come into contact with the mortgage processor.  

Choosing a mortgage processor 


So how do you select a mortgage processor for your loan? Well, in most cases, you will not actually get to select who your mortgage processor is. Typically they work for the loan company or lender and will be assigned your case. For most loans, you will probably never even see the mortgage processor or know who they are.  


If it is very important to you how the job is done and you simply don’t want to go with the processor that the lender uses, you might be able to hire your own mortgage processor that you can usually find through an agency. However, you have to be sure first that the lender you are trying to go through will approve your mortgage processor. Typically, they want it to be a third party or their own in-staff underwriter for them to approve it.  


Before you waste your time and money, make sure you are able to hire your own mortgage processor first. And if you can, make sure you get all the details about exactly what they will be doing for your loan process. Anything not covered by the mortgage processor, you will need to be sure gets done by someone. This may mean even more money out of your pocket to hire someone to do the tasks the underwriter does not do. Most people find it easier and cheaper to just use the one that the lender already has on staff. Typically the mortgage processing fees will be cheaper when you go with a processor that your lender already has on staff.  

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Stephen Katz
Katz Mortgage Team, a branch of VanDyk Mortgage Corporation - Atlanta, GA

My processor is like my right arm. Customers get to know her better than me:)



Katz Mortgage Team 

Jun 29, 2007 11:30 PM #1
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Mark Flanders

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