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Mortgage Processing: How Does It Work

Mortgage processing can be a bit confusing but certainly is very essential. There are numerous steps involved. We take a look at mortgage processing and how it works. This will help you understand how the mortgage processors are going to look at your application to see if they are going to offer you a mortgage.

Obtaining a mortgage can be a somewhat intimidating process. There are numerous mortgage options available, each with its own set of advantages and disadvantages. It’s no surprise that deciding which mortgage is best for us can be difficult. As a result, we’ll take a close look at mortgage processing, how it works, and how we may acquire the best mortgage.

If you’re looking to get a mortgage for your next big purchase, then you probably want to know how this system works. This blog will take a look at the different components involved in mortgage processing and how they work.

What Actions and Processes are Involved in A Mortgage?

Mortgage processing entails gathering and verifying our personal financial information. The loan processor is in charge of preparing loan documentation for the underwriter. We should double-check all relevant documentation before forwarding the loan file to underwriting.

The following are the steps that are involved in the process:

  • Pre-approval
  • House Hunting
  • Selecting a Lender
  • Application for a Mortgage
  • Home examination and Evaluation
  • Underwriting
  • Day of completion
  • Mortgage Frequently Asked Questions

Mortgage processing outsourcing services and mortgage virtual assistant services are available to aid us in delegating time-consuming, repetitive, and laborious work at a fair rate. Instead of hiring new employees, outsource these services and save up to 50% on costs.

What Does it Mean When Your Mortgage is with the Underwriter?

Being underwritten for a loan means that the lender is verifying all of our income, assets, debt, and property details before they issue final approval for the loan. The underwriter is the financial expert who looks at all of our finances and decides how much risk the lender will take on if they give us the loan. Not to forget that there are Mortgage Underwriting Support Services that are available to make this entire process way less hectic and easier

Six important loan process steps:

  • Pre-Approval for a Mortgage
  • Home Research
  • Loan Application/Processing
  • Mortgage Underwriting
  • Mortgage Closing

Loan Processor Vs. Loan Officer

A mortgage loan officer and a mortgage processor are often confused for the same position, but it’s essential to understand that they have separate responsibilities in the loan application process. A mortgage loan officer is a licensed mortgage expert who helps navigate the borrower through the loan application process and recommends the type of mortgage loan program that fits the borrower’s financial needs. Once the borrower decides on the loan terms, style, and size, the information goes to the mortgage processor, who then files the paperwork.

Underwriter vs. Loan Processor

Although the loan processor and underwriter are involved in the mortgage application process, they have different responsibilities. The loan processor’s job is to ensure we have all the documents to apply for the loan. The underwriter’s job is to decide if we can afford the monthly mortgage payments and if the loan will be approved.

The steps to getting a mortgage are pretty straightforward, but the language and actions can be confusing. And from the initial mortgage loan application to the closing, vast amounts of paper (and digital) records and forms are involved in the mortgage timeline process. With a bit of preparation, our path to ownership can be less painful. Some early steps in the mortgage approval process should be handled before talking to an agent.

How Long Does the Processing Part of a Mortgage Take?

Most lenders estimate that the mortgage loan procedure will take six to eight weeks. However, closing timelines might vary greatly depending on the lender and loan type. Banks and credit unions take slightly longer than mortgage companies.

Will I be Denied a Mortgage Loan at Closing?

Though it’s not common, there are situations in which a lender may deny a mortgage after the closing disclosure has been issued. This usually happens when changes in the borrower’s credit, income, or ability to close are detected by a third-party “loan audit” organization. If this concerns us, we should speak with our lender directly.

Several mortgage bodies show that around 10% of all mortgage applications are declined yearly. We mustn’t start applying to other lenders before speaking to an advisor, as each application can show on our credit file.


We hope you enjoyed our article about mortgage processing. We realize that mortgage processing can be a little bit of a confusing topic, so hopefully, our article helped clear up some of the confusion. We hope you enjoyed this post and look forward to providing more content to help you learn about this topic in the future.

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