The Mortgage Process
The processing of a mortgage loan 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 mortgage is originated due to the sale of a property, a refinance, or the adding of a junior mortgage, called a second mortgage or second trust deed, the process is more than just a notion as it can take on a life of it's own.
First of all, there are many people, in different but related industries, to which a borrower may never see who do the work that make the end results happen. Actually, there may be scores of people with different job functions working on the account.
If the mortgage 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 mortgage, realtors may not be necessary unless they are taking on the role of a mortgage broker.
The appraiser gives a written opinion as to the value of the property that the mortgage is to be given on. The appraiser takes pictures of the subject property, as well as comparible properties, and uses a certain methods and formulas to determine a specific value.
The Escrow Company
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.
The Loan Officer
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 the processor gather documentation and information that will be needed to process the loan.
The Loan Processor
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, and any other information that makes the underwriting process go smoothly.
The Loan Underwriter
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 the documentation that is presented, the loan will be approved and the borrower will get the mortgage.
The Title Insurance Officer
The Title Insurance Officer does a thorough title seach to determine if there are any liens on the property in question before issuing a Policy of Title Insurance. The title insurance is a protection for the lender and the property owner against losses from problems that may arise that may have a negative affect on the title after the title has been transfered.
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.
Others Who May Be Involved
As stated above, there are many others who are directly or indirectly involved in the mortgage origination process. Below are a few more.
There are the insurance agents and underwriters, the companies who draw up the loan documents, the physical inspectors, the termite companies, and many others who may have a part in making the mortgage a reality.
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