The processor's job is to verify everything on the application. Also the processor must be certain that you meet the qualifications required for the loan program in which you have applied. The processor verifies this information through (bank statements, paycheck stubs, etc. - that's why it's always helpful to submit this information when applying).

Think of the processor's job as a private investigator who must be certain that you are who you say you are, and that everything that you've submitted on the application is true. The processor also verifies that all of the documents required for approving the loan have been received. If no holes are found in the application, the next step is to proceed to .........

Underwriting

The underwriter's job is to back up the processor's research and make a decision in approving the loan. The processor evaluates the risk of the loan and again makes certain that you meet the loan program's qualifications. Normally, a loan will not make it to underwriting until a home has been found and a purchase agreement has been signed. As soon as you have a signed purchase agreement, make certain that you or your Realtor delivers a copy to the lender.

Once the loan has been approved, most likely your financial institution will submit a check to your closing agency when you and the seller meet to close on the home.

That's it! That's the whole lending process. That's how a loan starts and enters proceed through to closing. So how do we fit all the other mumbo jumbo such as interest rates and down payments into the picture? By learning the..... page 4 of 6