What Happens During Loan Processing?

A lot goes into loan processing, so I’ll break it down for you step by step today.

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What are the processing steps for a mortgage? As I like to say, this is where the magic happens.

People seem to think processing your home loan is easy, but there are many things involved. Basically, this is where the lenders go “CSI investigator” on you. Our job is to verify that everything you’ve provided us is true, from your name to your social security number to your date of birth and everything in between.


We start by submitting documents to our loan processor. They will order verification of your tax returns, title work, and numerous little things from the government, like who is involved in the transaction. They’ll also order things like the appraisal and surveys. Once we get all those things back, they’ll review whether there is anything you need to take, like a buyer’s education class. They’ll also alert you to anything they still need or things like funny banking deposits they may have seen while reviewing the documents.

Once they are done processing, they will come up with a list of conditions they think you’ll need to satisfy all the underwriting requirements. At this point, they will send a list of additional documents you’ll need at that time. That whole process takes about seven days, so once you sign a contract and hand over your loan documents, you probably won’t hear a lot from us in the first week. At the end of that week, we compile the list and send you a list of things we need for the underwriting department.

Once we get all those documents back to you, we submit the file to the underwriters, and they make the final decision on the loan. Stay tuned, because we’ll discuss that a little bit more in our next video!

If you have any questions about the processing of a loan, give me a call or send me an email. I’d love to help you out!