A loan processor is one who processes the loan application. Processing of a loan application involves collection and verification of all the necessary documents that are required along with the loan application. Reviewing the loan application involves determining whether the applicant is eligible to receive a loan from the bank or not. This is done by assessing the credibility and financial status of the borrower.

Typical documents that every loan processor would request for along with a completed loan application include income documents, asset documents, certificate of employment from the recent employee and also property documents. Income documents vary with the individual’s profession. In case of salaried individuals, one needs to submit a copy of the previous year’s W-2 form and a copy of last 2 months pay stubs that show year-to-date income. Self-employed people must submit a copy of previous year’s Form 1120 along with year-to-date Profit and Loss Statement, copy of previous year’s federal tax return and a copy of W-2 form. Retired individuals need to submit a copy of social security award letter or any pension award letter so as to show any income proof.

Simultaneously, the loan processor has to order for a copy of credit report of the applicant from any of three national credit bureaus. Credit reports and FICO credit scores are required to determine the credit repayment capability of the borrower. Interest rates on loans are calculated based on this factor only. Also, a loan processor needs to order for an independent appraisal of the property so as to determine the value of the home that is either being purchased or refinanced.Processing of a loan begins only after the loan processor receives all these documents.