After you win the offer on a new home, your Loan Advisor will introduce you to your Application Advisor (sometimes called a Loan Processor). It’s their job to help you build a rock-solid application and move you through the underwriting process as quickly and easily as possible.
Now, at other lenders, this process happens a little behind the scenes—you reach out to your Loan Officer, who reaches out to a Loan Processor, who reaches out to an Underwriter, who has an issue with the application, and then that game of telephone goes back and forth for 30 days, on average.
That process was kind of ridiculous. The manual back-and-forth added a lot of cost to the loan, which people end up paying for in the form of “Processing Fees” and inflated interest rates that can add up to thousands of dollars extra at closing. We decided to simplify the process and lower the costs.
So, we invented the “Application Advisor.” Unlike Loan Processors, who really only work to de-risk the loan for the lender, we wanted someone who could engage more directly and honestly with home buyers, and help them figure out how to package up a rock-solid application. This extra layer of support is one of the reasons we’re able to fund loans that get rejected by other lenders for silly technicalities, close on-time 98% of the time (when the rest of the industry is at 40%), and ultimately lower the rates for everyone.
How can my Application Advisor help me?
Your Application Advisor will reach out to you if there’s any discrepancies in your loan application (e.g., two little bits of information that don’t line up, like an income statement or an employment verification).
While these issues might seem minor, they could slow down the approval process or even put your loan at risk. So it’s good to take care of these to-do ASAP. Your Application Advisor will work with you to correct or clarify the information, whether it’s related to your income, credit history, or other details.
How does an Application Advisor verify my financial information?
Loan processors verify your financial information through a detailed process that involves reviewing and cross-checking the documents you provide. Here’s how they typically do it:
- Income Verification: They’ll examine your pay stubs, tax returns, and W-2 forms to ensure your reported income matches the documents. If you’re self-employed, they might request additional documentation like profit and loss statements.
- Credit Check: They’ll pull your credit report to review your credit history, score, and existing debts.
- Asset Verification: Loan processors review bank statements, investment accounts, and other asset documentation to confirm you have the funds for your down payment, closing costs, and reserves.
- Employment Verification: They often contact your employer to verify your job status, income, and employment history. This step ensures you have a stable income source.
- Debt-to-Income (DTI) Ratio: They calculate your DTI ratio by comparing your monthly debt payments to your monthly income. This helps determine whether you can comfortably afford the mortgage payments.
By thoroughly verifying this information, loan processors help ensure that your loan application is accurate and complete, which reduces the chances of any issues arising during underwriting.
If you’re ready to start your journey to homeownership, get pre approved with Tomo Mortgage today.
