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Five Star Mortgage, LLC
2280 Satellite Blvd.
Duluth, GA 30097
OFFICE 770.495.3516
FAX 770.495.3528
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Processing Your Loan
Processing a loan involves gathering all the information provided by a borrower and assembling it in an order that is easy for an underwriter to review. Once a loan is turned into the processing department the first step is to put the file in a coherent order. It is then reviewed to see what, if any, information is missing. In most cases there will be pieces missing and more information is requested from the borrower.
After all relevant information is gathered, the processors begin verifying the given information. Here are some of the common verifications that are performed. Verifications of Employment to verify employment dates, job position, and income. Verifications of Rent are performed if the borrower has been renting their residence. The purpose is to confirm whether or not the borrower has paid rent on time and maintained a consistent residence over the past 2 years. Verifications of Deposit are used to obtain current bank account balance information. If the borrower has mortgages that do not show up a credit report we must also get a Verification of Mortgage on those accounts.
Occasionally an alternative credit file must be built. We do this if a borrower does not have much credit or has very few credit accounts. This involves using information from accounts that normally will not show up a credit report. We can use utility bills, cellular phone bills, and rental accounts in these situations.
After all verifications have been completed the file is forwarded to the investor for an underwriter to review. Once an underwriter has reviewed a file, we usually get a conditional approval. This means that the file is approved as long as further information is provided. The underwriter could require clarification on an item or need an item that was not provided initially. Common items in the latter category usually include the appraisal, title search, or other items that take time to complete.
Once all of the conditions are satisfied the loan is "Cleared to Close." At this point processing coordinates getting the loan package and the actual funds from the investor to the closing attorney in preparation for the closing. The closing attorney can then prepare the documents and the settlement statement, called a HUD-1 Statement. Processing then reviews the HUD-1 for accuracy. Corrections, if any, are made and then the loan is ready for the Buyers and Sellers to sign the paperwork.
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