When you first engage a USDA lender and get rate quotes, closing cost information and ask various loan questions, you’re talking to your loan officer. The loan officer is specially licensed to quote interest rates and payments to you and is there to guide you through the process. But once you submit your loan application, there is a buzz of activity behind the scenes. Who does what at the USDA mortgage company?
USDA Loan Officer
This is your primary contact, at least in the very beginning. As we mentioned, this person will quote rates, provide you with a preapproval letter and essentially be there when you have any loan questions. Your loan officer will also request documentation from you in order to get your loan into processing.
USDA Loan Processor
Once you’re application has been submitted, your loan then moves over to your loan processor who gets the file documented and orders various third party services such as a title report and opens up escrow at your settlement agent’s office. If there are any missing items, the loan processor will provide you with a list of things still needed.
As the file becomes completely documented, the loan then moves over to the underwriter. The underwriter is the individual that makes sure the loan meets all USDA guidelines and if it does, the file moves on. If it doesn’t, the underwriter will provide a list of things still needed in order for the file to proceed. These items are called “conditions.”
Once the file is completely approved and the underwriter has determined it meets all USDA requirements, the loan is reviewed once more and closing papers are ordered and electronically delivered to the settlement agent.
The loan papers are properly signed and delivered back to the lender. The funding department makes sure the closing was held properly and all documents are in order. Once made, the funding department releases the mortgage funds.
Third Party Services
The appraiser is the individual who determines the current market value of the property you’re buying. Along with your sales contract, the appraiser will support the sales price by comparing recent sales of similar properties in the area. There should be at least three supporting sales.
This person makes a physical evaluation of your property from basement to attic making sure everything works and if it doesn’t what needs to be fixed. From broken window panes to light switches that don’t work, an extensive list will be prepared.
In different parts of the country, the title report can be provided by others such as an attorney or escrow officer, the title company provides a list of all those with any legal interest on the property. Most commonly will be the sellers along with the lender that has a mortgage on the property.
The individual that guides you through the closing process and makes sure you sign your closing papers properly as well as collect any funds from you needed for closing costs. This is the person who receives the closing instructions from the lender’s closer.