What Does a Mortgage Loan Processor Do and Why Should I Consider It as a Career?

Learn about key job functions and skills for loan processors.

If you’ve ever applied for a loan of any kind, you’ve worked with a dedicated financial professional known as a loan processor — maybe without even realizing it!   But what exactly does a loan processor do? And could this career field be a good fit for you?  

Whether you’re a seasoned mortgage professional looking for a change or brand new to the mortgage industry, here are a few things you need to know about the role, a few helpful skills, and some of the standard requirements for a loan processing career path.

What Is a Mortgage Loan Processor Responsible for Doing?

A mortgage loan processor (LP) is the middleman between the lender and the borrower. They play a key role in guiding loan applications across the finish line.   Here’s a closer look at their typical workflow, from start to finish:

A Mortgage Loan Processor’s Job: Upon Application

When a mortgage application comes in, the processor will begin preparing it for the underwriter. Underwriters are home finance professionals who verify borrower information and help determine whether they’ll be approved for the loan. So, safe to say clients want to put their best foot forward. That’s where the processor comes in.  

The LP has the important role of ensuring that the borrower has provided all the necessary documents, including income information, employment verification, bank statements, and more. They’ll then work to verify all that information. This might include due diligence like checking on the borrower’s employment status and confirming their social security number.  

The job also includes organizing the borrower’s information so that the underwriter can easily find and access the necessary documents. In doing so, they can provide a clear and consistent story for the underwriter on the borrower’s income, expenses, address, credit history, and more.

A Mortgage Loan Processor’s Job: Throughout the Approval Process

As the approval process progresses, the LP will act as a go-between for the borrower and lender. They’ll follow up on any requests from the underwriter for additional information, provide borrower explanations, and track down any missing documentation.  

The LP also orders all third-party services, from title to appraisals, and ensures all parties come together with their piece of the transaction puzzle, all in time for a smooth closing.

A Mortgage Loan Processor’s Job: Closing and Beyond

Once the final approval is granted, the LP then works with the title company to facilitate the balancing of the final numbers. They also work to schedule the official closing when the borrower signs on the dotted line and the home officially becomes theirs.  

At this point, the LP’s job is basically done! They’ll start the whole process over again with a new client.

What Skills Might a Processor Want to Have?

Like any career, some talents are more suited to mortgage loan processing than others. That said, there’s no reason you can’t grow or nurture the skills required to succeed.  

A few of the most common traits among great mortgage loan processors include:  

• Attention to detail. LPs juggle many clients, documents, and details. They can’t afford to have anything fall through the cracks. After all, even one mistake could compromise the entire deal!

• A high degree of organization. LPs work with many different document types and manage communication from multiple stakeholders all day, every day. A strong filing system, an easy-to-use dashboard, or even great note-taking abilities can help keep LPs organized and on track.

• Excellent communication. To succeed in this field, you’ll need strong communication skills, both in writing and verbally. Remember, LPs are essentially middlemen! You’ll be in constant contact with multiple clients, mortgage originators, and underwriters.

Of course, there are plenty more traits that might make you an excellent mortgage loan processor. These simply provide a jumping-off point.  

If you’re eager to learn more, perhaps consider easy-to-use dashboard with or shadowing a local processor. You can see how their personality gels with the job and help determine if this career might be a fit for you, too.

Are There Any Education or Training Requirements?

Mortgage loan processors will likely need a high school diploma, and some employers may require a bachelor’s degree in a field like finance or accounting. Training certification programs are available, but many employers also offer on-the-job training.  

Many loan processors can start off as loan officer assistants or loan processing assistants to gain experience, but knowledge of any part of the transaction process is helpful. For example, if you were a title company processor or document specialist for a loan servicing company, your experience could translate well to mortgage loan processing.  

A background in customer service, accounting, or finance could also be helpful in transitioning into this field.

Ready to Start Your Career as a Mortgage Loan Processor?

So, does a career in mortgage loan processing sound right for you? This field is fast-paced but rewarding, and there is plenty of room for newcomers.  

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