As you begin the home purchase process, you will quickly find out that it’s a very detailed process with lots of communication and hard work between you and your loan officer. It may seem at times that your loan process is a one on one proposition with your loan officer, however, in actuality, there are a whole host or a village of real estate and mortgage professionals who will be involved in your home loan purchase process. A wide array of parties in the industry from, loan processors, underwriters, real estate agents, legal industries as well as governmental agencies and even investors may find your mortgage file on their desk at some point. Here are some of the “key” people you may be dealing with during your loan approval process.
Real Estate Agent – Your real estate agent will be with you from the very beginning until the moment you sign your final document and walk away with the keys to your new home. They will verify your Pre-Approval, help you find the perfect home for you, and your family, negotiate the sales price and seller credits, and verify you have everything you need to close on your home as well as many times, accompany you to the actual closing.
Loan Originator – The first point of contact between a home purchaser and the mortgage application process is usually with our mortgage loan officer. It’s the loan officer’s job to find out what the borrower’s needs are and to match the borrower’s needs with the loan product that best fits their situation. Our loan officer is your ambassador to the lending process; the person who is “on your side” and works hard to set up the application with the best chance of getting your loan application documents organized and all of the paperwork, delivering information on interest rates, loan fees, closing costs, etc., and then working diligently to get your loan closed for you.
Loan Processor – Despite not getting enough recognition, loan processors are one of the most vital players on your mortgage loan, working tirelessly behind the scenes to set up and deliver your loan application to the underwriter. The loan processor also helps to acquire conditions the underwriter places on your loan, provide any other supporting documentation, communicate with the loan officer and sometimes with you, the borrower.
Appraiser – The appraisers are enlisted by us (the lender) to assess the accurate market value of a property, but the appraiser is paid by the borrower through the loan fees and act as neutral third parties, with a vested interest to serve no one and nothing but the facts. The appraiser’s job is crucial to the lending process, ensuring that we the lender is making a wise investment in funding the loan, ensuring that the value of the home is there down to the penny. If the value is not what it needs to be, the loan could be denied, the loan amount adjusted, or the deal needs to be renegotiated between buyer and seller.
Underwriter – The underwriter works for the lender to gauge if you (the borrower) are indeed eligible for the mortgage loan you have applied for. Underwriters bear the responsibilities of verifying all the documentation to determine if the loan is going to fund and close, insuring conditions, asking questions, and generally exercising a high standard of diligence to mitigate risk and protect the lender. Underwriters also make sure the loan meets standard guidelines, so that it can be packaged and resold into the secondary market.
Title Agent – A title agent issues a title insurance policy for the property. Title agents also perform other tasks integrated into escrow and closing in some places. The title search procedure ensures the home is legally available for sale by the seller or refinance, and is free of liens, unpaid taxes, or other property restrictions.
Escrow Officer/Closing Agents - Escrow Officers and/or Closing Agents are integral to coordinating all parties throughout the loan and, or real estate transaction, as well as handling the signing of loan documents by the borrower, closing and disbursing finally recording the loan documents with the county recorder’s office.
Funder – The funder gives the final sign-off on disbursing the money. Whether giving the information to the Escrow Officer or the Closing Agent.
Governmental Agencies – The Federal Housing Administration (FHA) a division of the U.S. Department of Housing and Urban Development (HUD) helps fund loans for those who would traditionally have a hard time qualifying or buying their first home. Likewise, the Veterans Administration (VA) helps our military servicemen and women get loans and to buy homes. The FHA and VA aid and foster the mortgage process by insuring a portion of the value of the mortgages, protecting lenders against losses and encouraging homeownership.
Investors – Most lenders who approve mortgages and disburse funds do not keep the paper or hold and service the mortgage during its lifespan. In fact, a good portion of loans are sold into the secondary mortgage market, where even more people are involved, from aggregators to Securities Dealers to Institutional Investors.
Servicers – When a loan is funded, someone has to service the loan, which entails sending out mortgage statements, collecting monthly payments, dealing with late and non-payments, and keeping tabs on amortization, payoffs, the release of liens and general customer service assistant on the mortgage loan until it is paid off.
As you can see, there are many players from start to finish involved in your mortgage loan process. As the saying goes…Teamwork makes the Dream WORK! At LEGACY Home Loans, our goal is to work diligently together and not against each other to help each person reach their dream of homeownership.
