What Does a Loan Processor Do?
A loan processor plays a critical role in the lending process by preparing and verifying loan files before they are submitted for underwriting. These professionals gather borrower documentation, confirm its accuracy, and ensure all required materials are in place to support an efficient, compliant loan approval. Loan processors work closely with loan officers, underwriters, borrowers, and third-party vendors to keep files moving toward closing.
In residential mortgage, auto, consumer, and commercial lending, processors help reduce delays and minimize risk by reviewing applications, ordering services such as appraisals or title checks, and checking compliance with applicable regulations. Their attention to detail and time management directly impact borrower satisfaction and loan turnaround times.
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Loan Processor Core Responsibilities
- Review loan applications for completeness and accuracy
- Collect, verify, and organize borrower documentation (e.g., pay stubs, tax returns, credit reports)
- Order and track third-party services such as appraisals, title work, or VOEs
- Communicate with borrowers, loan officers, and vendors to resolve issues or request additional documents
- Prepare loan files for underwriting and submit through loan origination system (LOS)
- Ensure adherence to lending guidelines and regulatory compliance (TRID, TILA, RESPA)
- Maintain accurate records and timelines within the LOS
- Assist with clearing conditions and preparing final files for closing
Required Skills and Qualifications
Hard skills
- Proficiency with loan origination systems (e.g., Encompass, Calyx, Blend)
- Knowledge of credit, income, and asset documentation requirements
- Familiarity with federal and state lending regulations
- Experience ordering and tracking third-party loan services
Soft skills
- Strong organizational and time management skills
- Exceptional attention to detail
- Clear and professional communication with internal and external parties
- Ability to handle multiple files and meet strict deadlines
Education
- High school diploma or equivalent required
- Associate’s or bachelor’s in finance, business, or related field preferred
Certifications
- Not required
- Mortgage processor certification (e.g., NAMP-CMLP) is a plus
Preferred Qualifications
- 2+ years of experience in loan processing or mortgage operations
- Experience with FHA, VA, USDA, or conventional loan programs
- Familiarity with both retail and wholesale lending channels
National Average Salary
Loan processor salaries vary by experience, industry, organization size, and geography. Click below to explore salaries by local market.
The average national salary for a Loan Processor is:
$50,785
Sample Job Description Templates for Loan Processors
Mortgage Loan Processor
Position Overview
We are hiring a Mortgage Loan Processor to prepare residential loan files for underwriting and closing. This role is responsible for gathering, reviewing, and verifying borrower documentation to ensure compliance with FHA, VA, USDA, and conventional mortgage guidelines.
Responsibilities
- Review loan applications and collect supporting documents (e.g., income, assets, credit)
- Order and track third-party services such as appraisals, title work, and VOEs
- Ensure all documents are accurate and compliant with TRID, RESPA, and TILA
- Submit files through LOS (e.g., Encompass) and clear pre-underwriting conditions
- Communicate regularly with loan officers, underwriters, and borrowers
Requirements
Hard skills
- Experience with mortgage LOS platforms (e.g., Encompass, Calyx)
- Familiarity with FHA, VA, and conventional loan guidelines
- Understanding of mortgage disclosures, GFE, and LE/CD forms
Soft skills
- Exceptional attention to detail
- Time management and multitasking across multiple loan files
- Professional and proactive borrower communication
Education
- High school diploma required; associate’s or bachelor’s preferred
Preferred Qualifications
- 2+ years of residential mortgage loan processing experience
Consumer Loan Processor
Position Overview
We are seeking a Consumer Loan Processor to handle the administrative and documentation aspects of personal, unsecured, and secured loans. This role ensures applications are complete, accurate, and ready for final review.
Responsibilities
- Process loan applications for personal, home equity, or secured loans
- Verify applicant information including income, credit, and collateral
- Prepare disclosures and follow up on missing or incomplete documentation
- Submit files for underwriting and communicate any required conditions
- Maintain compliance with consumer lending regulations and internal policies
Requirements
Hard skills
- Familiarity with consumer lending systems and documentation
- Ability to read credit reports and verify financial information
- Working knowledge of lending compliance regulations
Soft skills
- Accuracy in document handling
- Strong organizational habits
- Ability to follow checklists and timelines
Education
- High school diploma or equivalent required
Preferred Qualifications
- 1–2 years of consumer lending or banking operations experience
Auto Loan Processor
Position Overview
We are hiring an Auto Loan Processor to manage the documentation and validation of vehicle loan applications. This role supports both direct and indirect lending channels and ensures loans are prepared for timely funding.
Responsibilities
- Validate credit applications and verify borrower and vehicle information
- Confirm loan terms, trade-ins, down payments, and dealer documentation
- Coordinate with dealerships and borrowers to gather required documents
- Ensure compliance with internal guidelines and lending regulations
- Process loans through LOS and prepare files for funding and title work
Requirements
Hard skills
- Experience processing auto loans or indirect lending applications
- Familiarity with credit reports, proof of income, and vehicle paperwork
- Knowledge of systems like RouteOne or Dealertrack
Soft skills
- Responsive communication with internal and external stakeholders
- Detail-focused data entry and file organization
- Ability to manage a high volume of applications efficiently
Education
- High school diploma required
Preferred Qualifications
- 1+ year of experience in auto finance or loan processing
Commercial Loan Processor
Position Overview
We are hiring a Commercial Loan Processor to support business lending by organizing, verifying, and packaging loan files for underwriting. This role ensures accuracy in financial documentation and compliance with commercial lending standards.
Responsibilities
- Collect borrower financial statements, entity documentation, and collateral info
- Prepare and review loan packages for small business, CRE, or C&I loans
- Order and track appraisals, title searches, UCC filings, and insurance certificates
- Maintain loan checklists and work closely with relationship managers
- Ensure adherence to credit policy, regulatory requirements, and internal processes
Requirements
Hard skills
- Familiarity with commercial lending documentation and due diligence
- Experience with credit analysis support or SBA loan packaging
- Proficiency in loan or document management systems
Soft skills
- Strong document tracking and deadline prioritization
- Communication with borrowers and cross-functional teams
- Ability to manage complex, multi-source documentation
Education
- Associate’s or bachelor’s in finance, business, or related field preferred
Preferred Qualifications
- 2–3 years of experience in commercial or SBA loan processing
Construction Loan Processor
Position Overview
We are hiring a Construction Loan Processor to support the documentation and disbursement process for residential and commercial construction loans. This role involves coordinating draw schedules, verifying documentation, and maintaining accurate records throughout the construction period.
Responsibilities
- Collect borrower documentation including plans, budgets, and permits
- Order appraisals, title updates, and insurance binders
- Track inspections and manage construction draw requests
- Monitor lien waivers, change orders, and escrow balances
- Communicate with builders, borrowers, and internal departments to ensure compliance
Requirements
Hard skills
- Understanding of construction lending documentation and draw process
- Experience with spreadsheets and LOS tools
- Familiarity with construction schedules and loan disbursement controls
Soft skills
- Highly organized with project-tracking ability
- Proactive communication with all stakeholders
- Detail-oriented under dynamic timelines
Education
- High school diploma required; finance or real estate coursework preferred
Preferred Qualifications
- 1–3 years of experience in construction or real estate loan processing