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MLO Training: Mortgage Loan Application
LOAN OFFICER TRAINING: Mortgage Loan Application
The loan application is a key part of getting a home loan. In this training, new and experienced loan officers will learn to complete and review a mortgage loan application, as well as guide clients through the process.
A complete and accurate loan application helps lenders judge if a borrower can repay the loan. This means checking the borrower’s income, assets, job history, debts, and the property itself.
Loan officers need to ask the right questions, gather the right documents, identify potential issues, and prepare the application for processing and approval.
When do you send out the link to your secured mortgage loan application? The first step of the mortgage loan process is to talk with the borrower over the phone and see if they would qualify. If after asking the following questions, you, the MLO, see the borrower does qualify from the answers they gave you, the next step is to email or text them the secured link to your mortgage loan application. The borrower and/or all co-borrowers need to complete the link to your mortgage loan application. Name, Address for the past two years, Employment and Position for the past two years, date of birth, social security number, and other basic information.
In this GCA Forums eLearning thread, students and loan officers will learn the basics of the mortgage loan application, such as borrower information, job history, income, assets, and debts. The thread will include real-life examples and case studies, and everyone is encouraged to share, ask questions, and learn the steps needed for a successful loan approval.
Key Topics on Mortgage Loan Application Include:
- Real estate-owned, declarations
- Credit authorization
- Government monitoring, and more.
The goal is for members to learn how to prepare loan applications with the appropriate attachments and documents, so they can present clear, complete mortgage files.
This thread is also the proper place to post. You can also use this thread to post your questions. A mortgage loan application is the form lenders use to collect a borrower’s personal and financial information. This application and information assist the lender in determining the borrower’s eligibility for a home loan.
Reasons for the Importance of Accuracy
Even small mistakes on loan applications can lead to delays, additional conditions, loan denials, or compliance issues. Loan officers should carefully review every detail and ensure all information is accurate and supported by documents. Focus for Loan Officers
Loan officers should focus on several key areas when reviewing a mortgage application. These include checking the borrower’s credit, verifying employment, reviewing income and assets, reviewing all debts, checking property details, and ensuring the loan purpose is clear.
Completing The Mortgage Loan Application-1003
The borrower, and co-borrowers if applicable will open the link of the mortgage loan application and complete the best they can. The loan application has a section for the borrower to upload the following:
- Front and back of drivers license
- Front and back of social security card
- Two years of W2s for wage earners, two years of personal and business income tax returns for self-employed borrowers, social security awards letter and statement for social security recipients, pension documents for retirees receiving a pension, child support/alimony/divorce decree if applicable.
- Two months of bank statements or 60 days of bank printouts (stamped, signed, and dated by teller) to reflect the funds for the down payment and/or closing.
There are additional documents the lender will need but initially the above line items will do for the loan officer to qualify, pre-approve, and issue a pre-approval.
Submitting The Completed Mortgage Loan Application
Once the borrower and co-borrowers if applicable completed the mortgage loan application, they click the icon to send. The mortgage loan originator gets the loan application plus the uploaded documents. The application, documents gets imported to a Loan Origination System (LOS). Every company use their LOS of choice. At Gustan Cho Associates, we use ARIVE LOS.
ARIVE is hands down the best Loan Origination System and the LOS of choice for many. and will populate the mortgage loan application, the findings of the automated underwriting system (AUS), the tri-merger credit report.
ARIVE also has every necessary documents you need such as the pre-approval letter, and other important tools. The tri-merger credit reporting system and AUS is integrated in ARIVE. You would pull a tri-merger report on ARIVE. After you review the mortgage loan application, tri-merger credit report, verify income and other documents uploaded, you then enter the data in the automated underwriting system. The automated underwriting system should render an approve/eligible findings. Once you review the mortgage loan application, documents, and clarify any issues that you are concerned about and get an approve/eligible findings, you can now issue the borrower a pre-approval letter.
Remember, that the above process is a fast-track process and we will circle back and cover and discuss sub-topics that loan originators encounter during the mortgage loan process including:
- Debt-to-Income Ratios
- Credit Profile
- Payment History
- Employment History and Gaps in Employment
- Manual Underwriting
The way the mortgage process continues depends on the type of lender (mortgage broker vs mortgage lender and mortgage broker versus correspondent lender. and direct lenders).
The next step is to issue the pre-approval letter where the borrower can now start shopping for a home.
NOTE: It is very important that you read and understand ARIVE, therefore, please click the link below on ARIVE.
Here is the link for ARIVE: https://www.arive.com
Please reply if you have any questions about the content above. All questions will be answered by experts and experienced mortgage loan originators and/or practicing mortgage professionals with expertise in their respective fields. Viewer may also post, reply, and share their thoughts.
Practical Training of Loan Officers
This section will offer examples, scenarios, and tips to help you avoid common mistakes when completing and reviewing a mortgage application.
Goals of this eLearning Module
This online training is designed to help mortgage loan officers feel more confident and professional when helping clients complete mortgage applications. A well-prepared application leads to a strong mortgage file.
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This discussion was modified 8 minutes ago by
Harlan.
arive.com
ARIVE: Complete Loan Origination Platform
ARIVE is a complete digital origination platform for Mortgage Brokers. Consolidate your Loan Origination System, Consumer POS, Pricing Engine, Digital Docs, Contacts all in one place. Access industry first Lender Marketplace to digitally submit loans to Lenders and get status … Continue reading
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