What is the Order of the Closing Process from Qualification?
However, the step of the overall home loan process is an actual process that involves multiple people and departments. The goal of the lender, whether they are mortgage bankers or mortgage brokers, is to get a mortgage loan application to the finish line. The finish line is clear to close. Clear to close means the mortgage underwriter has signed off on the file and has given a stamp of approval to prepare closing docs and wire the funds. In this blog, we will go over how the mortgage process works from qualification to closing at Capital Lending Network. No two lenders have the exact business model. However, to get from loan application to a clear to close is similar with all lenders. By going over our steps of the mortgage process at CLN Mortgage Group, our clients will have a better understanding of how the overall mortgage application and approval process works.
How The Mortgage Process Works: The Scheduler
The scheduler will contact potential clients who contact Capital Lending Network, Inc. either by completing a mortgage inquiry form or calling our offices. The scheduler will schedule the borrowers an appointment for a consultation with a loan officer when the initial lead comes in.
There is a 4 call and 2 SMS repeat follow up schedule for the scheduler to call the lead to get the loan consultation booked. If not booked the lead goes into a drip campaign and the lead workflow is stopped. When a loan officer from Capital Lending Network, Inc. calls on an appointment time and the lead does not answer, the scheduler is tasked to rescheduling the appointment. Again 4 calls and 2 SMS call schedules. Once the consultation is conducted with the borrower, the scheduler will then coordinate blackout time for the loan officer. The loan officer will setup all new loan applications during the blackout time arranged by the scheduler. The loan officer will send the loan options report to the scheduler.
The scheduler will set a day and time for the potential borrower and the loan officer to review the loan options report. The loan officer will determine whether the borrower qualifies now or there are other tasks the borrower needs to do so they become eligible. Basically, the scheduler is the LO’s executive assistant.
How The Mortgage Process Works: Production Partner
Once the scheduler has accomplished their work, the file then gets transferred to a production partner.
Here is the scope of work of the Production Partner:
- The production partner is in charge of the mortgage intaken after the loan application is received.
- It is the job of the production partner to set up a new loan.
- The loan officer will review all documentation.
- After reviewing all documentation, the loan officer completes the loan setup checklists.
- Both internal checklist and wholesale lenders submission checklist to insure all pertinent documentation is obtained prior to loan registration.
The production partner will register the loan with a wholesale lender.
The production partner will inform the loan officer the loan has been registered at a particular wholesale lender for the loan officer’s lock and float strategy:
- The production partner’s job also includes insuring the loan disclosures are correct.
- The production partner will make sure the borrower acknowledged the initial disclosures.
- It is the responsibility of the production partner to make sure the wholesale lender has the intent to proceed acknowledgment by the borrower.
- The production partner will update all parties as to updates on the loan as well as updated conditional loan approval.
- The production partner will order the home appraisal through the Appraisal Management Company (AMC).
- The production partner will be responsible to make sure the borrower’s credit card was successful in making the payment for the appraisal order as well as note the inspection dates and the completion date.
The Role Of The Approval Coordinator At Capital Lending Network
The role of the Approval Coordinator is to work on the conditional loan approval as they come it. The approval coordinator will prioritize the conditional loan approvals of individual borrowers based on the closing date:
- Will insure the home appraisal is received on the stated report due date.
- Will review the home appraisal and make sure the appraisal is acceptable and came in at value.
- Will review the list of conditions.
Make sure all conditions are complete, legible, has no missing pages, and upload conditions.
The approval coordinator will make sure the account manager of the wholesale lender can see conditions submitted and all conditions are in underwriters’ que. Make sure the conditional review is completed based on the lender’s turn time. Will notify the loan officer to make sure the loan is locked prior to submitting the file for a clear to close.
The approval coordinator will be under pressure to get make sure the clear to close is issued in ample time for docs to be prepared and the closing date set. The approval coordinator needs to make sure the Closing Disclosure (CD) is sent out in ample time prior to closing. Responsibility includes closing documents that are sent to Escrow based on turn time. Will check on all prior to funding conditions have been addressed and cleared. Completes all final compliance checks on file and closes loan files.
Capital Lending Network is a high volume mortgage broker. This is why there are multiple mortgage professionals during the loan approval process. Other lenders may just have one mortgage processor handling a file from A through Z. It is up to the individual mortgage company how they decide on how to set up their overall processing and approval team.