A loan processor (LP) is a certified professional, who helps their clients fill in the financial applications and submits them to the credit bureau or any other necessary financial institution. They make the application accurate so that their client's loan is approved and the loan amount gets sanctioned to the client in a minimum amount of time.
Nature of Work
LPs should first get an appointment fixed with the client. During the meeting, find out initially the expectations of the client. Perform an analysis and suggest a list of loan products suiting their needs. Present a comparative study so that client can easily select a product from the list.
The LP is also expected to clarify any doubts in the client and financiers mind. They should also explain the loan costs throughout the period of the loan and the expected monthly payments.
The LP can also evaluate the financial position and background of their clients to check the possibility of the loan approval. Not only that they should also check whether the client can repay the loan as agreed. If they are satisfied, the LP sends the loan application to the financial institution. The LP also takes the responsibility of explaining the facts to the client to better insure loan application approval. As a LP, one can work comfortably from a bank or their home.
Ways to Become a Loan Processor
- LP certification is the
first step to take. There are many certification programs; the National Association of Mortgage Processors (NAMP) is the most valued and notable one.
- If you are working in a state where it is statutory to acquire a license for working as a LP, you should apply for a license and obtain it through the Department of Banking of your respective state. For this you might have to take LP training and pass a mandatory test approved by your state's banking and insurance sector. After you pass, you will only be that much more legitimate.
- You should get yourself acquainted with different loan products available in the market so that you can suggest a suitable loan product to your client.
- Work on your soft skills especially your communication skills. Because as a LP you have the most important job of conveying all the information regarding the loan product in a very cordial way.
- Train yourself to present yourself clearly and specifically in a pleasant and affable manner. There should not be any ambiguity.
Such professionally trained LPs can see a rapid vertical growth in their career.
Most of the LPs prefer to be specialists in some areas like Home, Real Estate, Car, and Personal Loans. Some LPs act like salespeople since sometimes they compete with mortgage brokers.