Once you have submitted your mortgage application and any accompanying documentation, your Loan Officer will deliver your file to a Processor. The Processor reviews the application and any documents to make sure all of the loan conditions, or requirements, are satisfied. In preparing your file for underwriting, a Processor will verify your employment history and assets to ensure you have adequate funds for any down payment or closing costs. Once all requested information has been received and verified, the Processor will organize it and send your file to Underwriting. Once your loan has been cleared to close by an Underwriter, the Processor requests the closing documents.
According to Jenny Lowe, Processing Manager at Castle & Cooke Mortgage, here are three things your Processor wants you to know:
1. Be sure to provide current documentation
When submitting the requested documents needed to close a loan (two months’ worth of bank statements, 30 days’ worth of paystubs, etc.), make sure they are the most recent copies. If you receive new or updated documents during the application or review process, you may be asked to submit them as well.
You must also be able to provide two years of employment history. If you were a full-time student for these years, you may need to provide transcripts.
2. Respond to requests for information in a timely manner
Even if you submit everything that is initially requested with your application up front, you may be asked for additional documentation or explanation throughout the loan process. Whether you receive a request for more information from your Loan Officer or Processor, be sure to respond quickly. In most cases, your application cannot move forward through the process if documentation is missing, so you could risk missing deadlines like those outlined in your purchase contract, or your interest rate lock could expire if you delay.
3. Gifted down payments must still be verified
Homebuyers may have their down payment funds gifted to them, but the gift must come from a close relative, like a parent or sibling—not a long-lost uncle. Just as the source of down payment funds supplied by the borrower must be verified, the source of the funds of the individual giving the gift must be verifiable.
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Castle & Cooke Mortgage, LLC® (NMLS #1251) is a leading independent mortgage lender headquartered in Draper, Utah, with locations across the United States.
Restrictions may apply. Not all who apply will qualify. Program qualifications & offerings are subject to change at any time. Castle & Cooke Mortgage, LLC is not affiliated with, or endorsed by, the U.S. Government. Equal Housing Lender. Castle & Cooke Mortgage, LLC is licensed in AL, AR, AZ, CA, CO, CT, FL, GA, HI, ID, IL, IN, IA, KY, MD, MI, MS, MO, NE, NV, NM, NC, ND, OH, OK, OR, TN, TX, UT, WA, WI and WY. Licensed by the Arizona Department of Financial Institutions, Arizona Mortgage Banker: BK-0908287. Licensed by the Department of Business Oversight, under the California Residential Mortgage Lending Act License #4130740. Regulated by the Colorado Division of Real Estate. Georgia Residential Mortgage Licensee, License #43759. Illinois Residential Mortgage Licensee. Licensed by the Mississippi Department of Banker and Consumer Finance. Ohio Mortgage Loan Act Certificate of Registration #SM.502008.000. Oregon Mortgage Lending License #ML-4090. Washington #CL-1251.
Information contained in this this Blog does not constitute legal, financial, or other professional advice or services and should not be used as a substitute for professional advice. The purpose of the Blog is to provide Castle & Cooke Mortgage, LLC’s opinions and general guidance on certain matters related to mortgages. The reader accepts full responsibility for use of the information contained herein.