Learn Who is Involved in the Mortgage Process
Last Updated: October 19, 2022

Learn Who is Involved in the Mortgage Process

There is a whole team behind the mortgage process. From your loan officer to the underwriter, these people will ensure your loan closes on time. Learn who they are and what they do.

1. Real Estate Agent

A real estate professional will help you find your home based on how much you can afford. They will also provide you with a list of potential homes and help you make your selection.

Once you are ready to make an offer, they will handle all contracts and negotiations with the seller’s agent.

What Are Real Estate Agents’ Responsibilities?

  • ¬†Prepare purchase agreements
  • Coordinate closing documents
  • Oversee signing of documents
  • Oversee disbursements of funds
  • Negotiate between buyer and seller
  • Present purchase offers
  • Coordinate open houses

2. Loan Officer

This representative works for a broker or lender. They will get you approved for a loan based on your income, finances, and credit information. A loan officer will present you with different loan options based on your qualifications.

They will guide you through the loan process and communicate with you in order to fund your loan.

Getting a mortgage application checklist of the things you need for a mortgage is vital because it gives your loan officer all the information they need to present you with loan options.

What Are a Loan Officer’s Responsibilities?

  • ¬†Evaluate the loan application
  • Ensures that loan application is complete
  • Verify borrower’s creditworthiness
  • Search and display loan programs and rates to the borrower
  • Communicate between the borrowers and underwriters

3. Loan Processor

This representative will process your file from beginning to end. They will ensure all your documents, such as your W-2s, pay stubs, and credit report, are in order. Once they gather your documents and put them in order, they present your file to the underwriter.

The loan processor will also check the files for any errors and correct them to ensure your file is not delayed. A mortgage loan that is delayed can potentially cause you money if it does not close in time.

What Are Loan Processors’ Responsibilities?

  • Liaison between the lender, borrower, underwriter, and loan originator
  • Collect all documents to present to the underwriter
  • Order the title and credit reports
  • Verify the income and accuracy of each document submitted

Many of the loan processors’ duties are quickly becoming automated. So, don’t be surprised if your lender asks you to submit certain information and documentation online.

Shopping for a home and getting a mortgage online has become the norm in recent years. Shopping for a home online is also convenient because you don’t have to leave your home.

You can apply anytime from anywhere, and you only leave the house when you are ready to view some homes.

Start looking at your options

Promise Home Loans is here to help.

4. Mortgage Underwriter

The mortgage underwriter is the person who will approve or reject your loan application. They work for the lender directly and look out for the lender’s best interest. It is important to have your loan application in order and be prepared to submit documents to prove that you can afford the loan you’re applying for.

What are the mortgage underwriter’s duties?

  • Review and identify any fraudulent activity
  • Work closely with the loan processor to review all documents
  • Underwrite the loan in compliance with credit and regulatory guidelines
  • Ensure all the data is entered correctly

5. Real Estate Appraiser

Appraisers typically work independently and give their unbiased opinion of how much a house is worth based on factual data. They provide the final appraisal report directly to the lender and give you a copy within three business days. All real estate appraisers must be licensed.

What Do Appraisers Consider When Valuing a Property?

  • Property size
  • Condition of the home
  • Comparable homes sales in the neighborhood
  • Inspection of the exterior and interior of the home
  • Check for any home improvements
  • Check for permits
  • Consider how many rooms are in the home

If you are selling the property, make sure your house is nice and clean before

6. Home Inspector

This licensed individual is hired to ensure the home you’re buying is in good condition. If they discover any defects on the property, they will let you and your realtor know in their final inspection report.

Your real estate agent can help you find and hire a licensed home inspector. The home inspection report will ultimately help you make an informed decision to buy the home or not based on their findings. The lender will also use this report to assess whether or not the property is in a good enough condition for their investment.

What Does a Home Inspector Consider for the Inspection Report?

  • Roof
  • Gutters
  • Chimney
  • Foundation
  • Grounds
  • Drainage
  • Garage
  • Plumbing
  • Electrical
  • Heating and cooling systems
  • Ceilings and stairs
  • Windows, doors, and floors

7. Closing Agent

The closing agent is a neutral third-party representative responsible for transferring title from seller to buyer or from lender to borrower. They also ensure that everything is completed according to the escrow instructions and purchase agreement.

The closing agent will accept money from the buyer and the buyer’s lender to hold in a trust account. When it’s time to close the loan, they disburse all the money accordingly.

The closing agent also ensures that all documents are received from each party involved in the transaction. Additionally, they ensure all vendors associated with the transaction are paid. The real estate agent or the lender typically selects the closing agent.

What Are a Closing Agent’s Responsibilities?

  • Calculate final costs
  • Wire funds to appropriate parties
  • Conduct a post-closing audit
  • Review the HUD-1
  • Coordinate transactions between all parties involved
  • Comply with mortgage laws and regulations

8. Notary Signing Agent

The notary signing agent notarizes and certifies financial and legal documentation for mortgage loan documents. The notary signing agent must be trained on the loan documents process and need additional certification.

Today, you can sign your loan documents from your home through Remote Online Notarization (RON). RON is excellent for people who can’t meet face-to-face with the notary. It is more convenient for the borrower.

What are the Notary signing Agent’s Responsibilities?

  • Certify and notarize financial and legal documents related to loan documents
  • Certify real estate transactions: new home loans, reverse mortgages, closing contracts, refinances, and deeds
  • Act as a third-party witness
  • Ensure the borrower and lender’s signatures and initials are on all documents

Bottomline

Some of these mortgage professionals do more than just the responsibilities mentioned above; many tasks are becoming automated through online systems as time goes on.

Today, you have systems that underwrite files, capture e-signatures, and calculate fees online.

Nevertheless, you should know the professionals involved in the mortgage process and their responsibilities so that you know how to use their services to suit your best interests.

Photo credit: Vadym Pastukh

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