Mortgage and Loan Education

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Loan Processing Schools

Written by Dana Hinders
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Most loan processing tasks are now done with the aid of powerful computer software instead of time-consuming pen and paper calculations. This has made the loan officer's job easier, but technology is not intended to be a substitute for good judgment. Loan processing schools will teach you the skills you need to process loan applications quickly and accurately.

Loan Processing Course Topics

Loan processing school courses will show you how to evaluate supporting documentation for a client's loan application. Bank account statements, pay stubs, W-2 forms, tax returns, credit card balances, and evidence of previous rent or mortgage payments are some of the many forms of documentation a loan officer uses to process a loan. The client is responsible for providing this information, but you may need to assist them in certain cases.

Credit scores are a great source of anxiety for borrowers, but trained mortgage professionals know how to use this information to provide the appropriate loan products for their clients. Loan processing schools will teach you how to analyze a client's credit report and FICO score. You'll learn how to pre-qualify borrowers for a loan based on their credit histories and calculate a loan's proposed monthly payment.

Loan officers who can serve challenging clients get more business and earn higher commissions. Loan processing school courses can teach you how to refinance a mortgage; you'll learn how to compute the loan amount for refinance transactions and how to calculate loan to value ratios. Instructors can explain how to spot red flags in a loan application and which loan products are best suited for applicants with poor credit histories.

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