Loan Coordinator or Loan Processor: What is the Difference?
If you are applying for a mortgage loan or have applied for one in the past, you would have had a mortgage loan fulfillment team to help you try and get over the finish line. Depending on where you are in the mortgage process will usually determine who is actively working with you on your application process, but how do you know what team member is currently pushing your loan forward? In order to know the difference in a loan coordinator vs loan processor, we first need to define each.
Mortgage Loan Coordinator:
As the name suggests, this person is in charge of coordinating with all parties involved in this loan transaction. Outside of your Mortgage Loan Officer, this will be one of the first people you speak to and the people you talk to the most.
The mortgage loan coordinator starts the loan application, gathers all loan documents from you, and sends out the initial disclosures while also providing administrative support to the mortgage loan originator. If you have a question about loan options, loan programs, or interest rates, reach out to your loan officer, your loan coordinator can field any other questions.
Mortgage Loan Processor:
When the file gets assigned to a Processor, it is their job to get consumer loan applications over the finish line. From reviewing mortgage loan applications, sending loan estimates, and working loan conditions, there will be much correspondence from them.
They will review financial documents and credit reports and ensure the accuracy of the file. The Processor works with Underwriting on submitted loans to get full underwriting approval. Additionally, their jobs may include:
Reviewing closing costs.
Sourcing the down payment.
Gathering pay stubs.
Check guidelines for the loan program you are in.
Always feel free to reach out and contact the Processor for questions about what documents are needed and why; they get phone calls about these things all the time, and they are here to help you.
What are the different steps of a Loan Application?
You may think there are only two steps to a mortgage loan application process. Started and closed. This is not the case; however, there are nine different steps to get your loan from start to completion, and each team member has their own role, dependent on the step you are in.
The application process started: You’ve spoken to the mortgage loan officer and have filled out the application. From here, the file is given to a loan coordinator who requests additional information and loan documents from you. They fill out anything you may have missed and send out your initial disclosures. After receiving all the proper documentation, they move the file to loan processing.
In Processing: The Loan Processor will review all the loan documents the coordinator has gathered. They clean up the file, ensuring that everything listed in the loan application lines up with the documents they have, and then send the loan application to mortgage underwriting.
Initial Underwriting: The underwriter now reviews all that has been provided from the mortgage processor and the loan file and signs off on them. This includes the income calculation, assets from bank statements, and items to be addressed on your credit report. Underwriters, at this point, will either give an initial loan approval or a denial.
Conditional Approval: When the underwriter gives an initial loan approval or conditional approval, the file is sent back to your mortgage loan processor. They will work alongside the loan coordinator to create a list of additional loan documents that Underwriting will need.
It’s essential to get these documents back in a timely manner, as moving the file from conditional approval to final approval usually takes the most time. Once the additional documents have been received, the file is sent back to Underwriting.
Second Underwrite: The underwriter will now review the new items provided by the loan fulfillment team. If all the requirements are satisfied, they will issue final approval.
Final Approval: Congratulations, you’ve made it through the more difficult step of the mortgage loan process. The loan processor works to ensure compliance conditions on the loan are completed. It’ll likely be some unsigned disclosures from the start of the file.
Cleared to Close: Your file has been given the green flag to get you to the closing table. The Processor will complete a final employment verification and send the file to the closing team.
Closing: The closing team has started working with the title on the closing documents. The title will call you to schedule a time for the signing, often at their office. The title officer will review all the legal documentation you need to sign and provide you with a copy.
Funded: The signed closing documents are then sent back to your lender, and a funder assigned to your file begins to send out the disbursements of funds.
So, who do I contact for help?
The short answer would be either of them. Both parties are here to help you throughout the entire home loan process. I would remember what stage of the mortgage application process you are in and contact the most applicable person for that stage.
If you are looking for a fantastic team to help you through getting a mortgage loan, please reach out to one of our mortgage loan experts! He has his own in-house loan coordinator and Processor who work in the same office and have fantastic communication. I’m currently doing a loan with this team, and they have made this a smooth process.