A good loan processor is one who has complete knowledge of different loans that are offered by his company and the procedures required to process each of these loans. Role of a loan processor starts once the borrower submits a completely filled loan application to the bank. Every loan processor has to approach the customer in order to gather as well as complete the documentation process that is required to take the file from the stage of pre-approval to closing.

Primary job responsibilities of a loan processor include reviewing credit reports of the borrower, verification of borrower’s credit history in terms of debts and payments, determining borrower’s loan limit based on the income documents of the borrower and the employment certificate, and also order for an independent appraisal of the borrower’s property so as to determine the actual value of the collateral. In case of bad credit history such as late payments or bankruptcy, it is again the loan processor who has to send a notification to the borrower seeking a written explanation in the form of an application. Similarly, loan processor also needs to seek further justification from the customer in case the property value does not match the loan amount. Depending on these details, a loan processor prepares a complete file including the loan application and the supporting documentation and submits it to the electronic loan approval system. Apart from this, a loan processor is also responsible for coordinating events involved in the closing of a loan such as preparation of closing documents, contacting the customers for signing the loan documents, appraisal and also arranging attorneys.