A mortgage loan closer works on behalf of a lender. This person assembles and verifies all the closing documents required by the title insurance company. The mortgage loan closer triggers the activities needed to fund the loan and ensures that the mortgage meets financial industry regulations. In a final step, the closer prepares the file in anticipation of transferring the financing of a mortgage to a third party.
Typically, the closing of a sale or purchase of a house takes 24 to 48 hours. During this period, a large amount of paper must be filled in, verified and signed. The mortgage loan closer tightens all of the last minute loose ends. The file must be complete and accurate. If a piece of paper happens to be missing or the mortgage agreement slightly deviates from the standards, the loan will not be transferable to a third party. The loan closer ensures a smooth transition.
A loan closer identifies the documents that must be filled out and signed for each mortgage transaction. This task includes preparing the paperwork covering the loan's contractual terms, the insurance forms and the deposit information. The loan closer may set up appointments for the property to be appraised by an assessor. After the contract has been signed, the closer prepares the file for transfer to the financial institution that is interested in taking over the financing of the loan.
This profession requires attention to details and great sense of organization. Individuals who enjoy communicating effectively with clients over the phone or in person will perform well in this job. The loan industry uses financial software programs and word processing editors. The professional in this function should be at ease with a computer and enjoy mathematics and working with numbers.
Income and Employment
Mortgage loan officers earned a median annual income of $32,470 in 2008, according to the Bureau of Labor Statistics. In 2008, this function was held by 210,300 loan closers in the United States. The BLS forecast a growth of 4 percent in this profession between 2008 and 2018, a number lower than the average for all professional occupations. Although the number of mortgage applications will expand, the online services will take on some of the functions that would normally be performed in person by loan closers.
The minimum education for a mortgage loan closer is a high school diploma. Banks will generally prefer a candidate with some college coursework. Employers usually provide a training program to teach how to price loans and to go the important regulatory aspects of the loan industry. A couple of specialties enhance the backgrounds of loan closers. Training for the Federal Housing Administration loans and can be found online. The National Notary Association promotes notary training and lists exam requirements in each state on its website.
The market demand for professionals in this field fluctuates with the growth of the economy. In positive times, the real estate business expands, and the industry hires more mortgage loan closers. In down times, opportunities are limited, although refinancing of mortgages can keep the profession busy.