Friday, March 22, 2024

What Does A Mortgage Closer Do

Don't Miss

How To Become A Remote Mortgage Loan Closer

What to Expect on Closing Day ð Closing Costs and Documents

The qualifications to become a remote mortgage loan closer are a high school diploma and several years of experience closing loans. Employers prefer applicants who have experience with a specific type of mortgage, usually residential or commercial, and may accept additional work experience in lieu of education. You also need a working knowledge of regulatory and conventional guidelines for mortgage loan origination, which is partly why most loan closers spend several years working in a financial institution before applying for a remote role. Fulfilling the responsibilities of this job requires attention to detail, communication skills, reliable internet, and the ability to prioritize tasks and meet deadlines.

How To Become A Mortgage Loan Closer

Mortgage loan closers must have a minimum of a high school diploma and experience working in banking and loans. An associate degree in finance or business is a plus. Employers prefer candidates who have worked with the escrow, title, or loan funding processes and who are very familiar with governmental and industry guidelines on the mortgage approval process, including FNMA, FreddieMacm and FHLB guidelines. You may also be required to have additional licensing or certification. Mortgage loan closers coordinate a complicated process, so you need to have excellent attention to detail and organizational skills. You should also be a clear communicator and have strong math skills.

Collaborate With Real Estate Agents

Loan closers often collaborate with real estate agents throughout the loan approval process. They can work with real estate professionals to determine the value of a residential or commercial property. Then, loan closers can have an accurate idea of the loan that their clients may require so that they can purchase their desired property.

Don’t Miss: What Income Needed For Mortgage

Mortgage Closer Work Environment

Mortgage closers work in the loan department of banks, credit unions, and mortgage companies. They typically work Monday through Friday during regular business hours, although some may work evenings and weekends to accommodate the schedules of borrowers. Mortgage closers typically work in an office environment, although they may occasionally travel to meet with clients or attend conferences. The work can be stressful, as mortgage closers must pay close attention to detail and meet deadlines.

Description Of A Mortgage Specialist

New Hot Job

Mortgage specialists are professionals who work with lending institutions to identify the best lending product for their clients in exchange for taking the title of the debtors’ properties. These specialists must process mortgage loan applications by reviewing their paperwork to ensure accuracy and completeness before submitting for approval. They should monitor accounts during the bankruptcy proceedings to ensure that the rights of their clients are protected. Mortgage specialists are also required to guide associates regarding procedural guidelines from FNMA, FHLMC, and MHA.

The fourth career we look at typically earns lower pay than loan closers. On average, mortgage specialists earn a difference of $336 lower per year.

While both loan closers and mortgage specialists complete day-to-day tasks using similar skills like customer service, loan portfolio, and title companies, the two careers also vary in other skills.

While some skills are shared by these professions, there are some differences to note. “ensure compliance,” “trid,” “data entry,” and “truth” are skills that have shown up on loan closers resumes. Additionally, mortgage specialist uses skills like financial statements, outbound calls, loss mitigation options, and foreclosure on their resumes.

In general, mortgage specialists make a higher salary in the finance industry with an average of $41,888. The highest loan closer annual salary stems from the finance industry.

Read Also: What Is A Mortgage Modification Agreement

Similar Job Titles To A Mortgage Loan Closer

These job titles are similar to the Mortgage Loan Closer role, and are often used interchangeably by companies. For example, some employers may refer to a Mortgage Loan Closer as either a Mortgage Loan Officer or a Mortgage Closer.

A Mortgage Loan Officer shares 91% of core skills with a Mortgage Loan Closer.

How Can Mortgage Loan Closers Increase Their Salary

Increasing your pay as a Mortgage Loan Closer is possible in different ways. Change of employer: Consider a career move to a new employer that is willing to pay higher for your skills. Level of Education: Gaining advanced degrees may allow this role to increase their income potential and qualify for promotions. Managing Experience: If you are a Mortgage Loan Closer that oversees more junior Mortgage Loan Closers, this experience can increase the likelihood to earn more.

Recommended Reading: How Long Is A Mortgage Rate Lock Good For

What Is A Mortgage Closing What Happens At The Closing

The closing is the last step in buying and financing a home. The “closing, also called settlement, is when you and all the other parties in a mortgage loan transaction sign the necessary documents.

After signing these documents, you become responsible for the mortgage loan. Familiarize yourself with some of the key documents you will be signing so that you know what to look for when you get them.

If youre purchasing a home with a loan, the closing of your loan and the closing of your home purchase typically happen at the same time. Once the closing is complete, you are legally required to repay the mortgage.

Your closing may include some or all of these entities:

  • Your real estate agent or realtor
  • Your title insurance company
  • An escrow company
  • The sellers attorney
  • Your lender may or may not attend

Depending on what state you live in, all the parties may sit around a table and sign all the documents at once. Or the closing could take several weeks as the signatures of each party are collected separately. Some companies allow you to electronically sign documents, either in advance of closing or at the closing table. A closing may even be conducted by mail or even on the internet.

Regardless of who performs the closing or where it occurs, there will be many important documents that youll need to sign that will have lasting financial implications on your life.

Next step

Mortgage Loan Closer Jobs

What Not to Do Before Closing on a Mortgage
  • $40,950 – $68,250 a yearFull-time
  • Have 3 years current mortgage closing experience or a combination of mortgage experience that includes mortgage closing experience.
  • Experience Required: At least three years of banking in mortgage or loan related positions.
  • Act as correspondent between title company and loan officer.
  • Charlotte, NC 28204 Full-time
  • Assist in closing mortgageloans in compliance with organizational and governmental requirements.
  • Understanding of basic mortgage concepts.
  • Ship loan files and follow up on post-closing documentation for closed loans.
  • At least 1 year of experience closing loans.
  • Conducts research and makes knowledgeable decisions regarding issues relating to mortgageloan closing.
  • Ability to analyze data and make knowledgeable decisions
  • Coordinating closings with realtors, purchasers, sellers, title companies, and loan closer.
  • Preparing closing packages, along with disbursing and reconciling
  • Gulfport, MS 39503Full-time
  • Once received, make sure coverage is correct, loan number and mortgagee clause is correct for loan type.
  • Provide status updates to management on loans pending
  • Read Also: Can You Get Extra Money On Your Mortgage For Furniture

    Earn A High School Diploma Or Ged

    Most financial institutions require that loan closers have a high school diploma or GED. Consider taking courses that may enhance the skills that you can use while working as a loan closer, like math and communication. For example, taking a math class may help you understand how to calculate loan percentages.

    Setting Up The Wire Of Funds To Your Escrow

    Once your closing documents have been received and the mortgage funder confirms they are all signed and notarized correctly, the wire will be set up for your closing. Once your settlement company or attorney receives the funds, theyll send the monies to the appropriate parties, and the deed can be recorded in your name.

    Recommended Reading: Which Lender Has The Best Mortgage Rates

    Mortgage Loan Closer Job Description Sample

    With this Mortgage Loan Closer job description sample, you can get a good idea of what employers are looking for when hiring for this position. Remember, every employer is different and each will have unique qualifications when they hire for a Mortgage Loan Closer role.

    Job Summary

    We are seeking an experienced and detail-oriented Mortgage Loan Closer to join our team. You must have at least two years of experience working with loans, either in closing, escrow, title, or funding. We work with a high volume of loans, so you need to be comfortable working in a fast-paced environment. Our ideal candidate is thorough, self-motivated, familiar with governmental and industry guidelines for loan approvals, and can communicate effectively with all involved parties.

    Duties and Responsibilities

    • Forward closing documents to all parties, including borrowers, agents, escrow, and title
    • Ensure documents are completed and submitted promptly

    Requirements and Qualifications

    • A high school diploma or equivalent
    • An associate degree in finance or business a plus
    • 2+ years of experience in mortgage closing, origination, escrow, or title
    • Familiarity with governmental requirements for mortgage loan processes
    • Proficiency with basic computer programs and industry software
    • Self-motivated and detail-oriented

    What Is A Loan Closer

    Mortgage Closer T Shirt

    A loan closer is responsible for assisting clients in securing a mortgage loan. They often handle each aspect of the loan closing process, which includes completing the proper paperwork, informing clients of the loan’s contract requirements and preparing loan reports. Their goal is to help their clients gain approval for a loan and disperse their funds efficiently. These professionals have an in-depth understanding of loan regulations and payment procedures. Loan closers often work for financial institutions, like banks and lending agencies.

    Also Check: Can You Have A Tenant With A Reverse Mortgage

    Cons Of Using A Mortgage Broker

    There are also some downsides worth considering before pursuing this path.

    Cost can vary. Before agreeing to work with a broker, ask how they make their money. In some cases, the lender pays the mortgage broker, and in others, the client pays the broker. If payment is the clients responsibility, ask if they charge a flat fee or earn a commission.

    Lenders usually pay a higher commission than borrowers do. Lenders typically pay between 0.5% and 2.75% of the loan amount. When a client pays a commission, a broker usually charges an origination fee of less than 3% of the loan amount.

    The housing market in a particular area can influence what a broker charges.

    Conflicts of interest may arise. While at first glance it may seem more beneficial to work with a mortgage broker who is paid by the lender, give this some thought. Is the broker biased toward lenders that pay the commission? Researching brokers before working with them and asking for referrals can help. Do some digging to see if past clients found them to be trustworthy.

    Some lenders dont work with mortgage brokers. Some lenders only work with brokers, and some never work with them. People who hire a mortgage broker may miss out on certain opportunities.

    Ensuring You Get Credit

    When you first made the offer on your house, you probably had to make an earnest deposit as a good faith gesture of your intent to buy your home. You also likely paid $300 to $700 for an appraisal on your property.

    The mortgage funder makes sure they have records of the home appraisal and any other fees you prepaid. They will also keep proof of your earnest deposit, so you get credit for prepaying those items at your closing.

    If the seller is paying any of your closing costs, the mortgage funder will also ensure you get the proper credit by working with the escrow officer or attorney to balance the amounts due.

    Don’t Miss: How To Go About Getting Pre Approved For A Mortgage

    Mortgage Closer Job Description Template

    We are looking for a mortgage closer to coordinate all phases of loan closing. The mortgage closer’s responsibilities include preparing loan closing packages, communicating with all parties involved in the transaction, and ensuring that all paperwork is complete, accurate, and in compliance with legal regulations.

    A successful mortgage closer should be detail-oriented, have a great sense of organization, and be able to maintain accurate closing schedules.

    Mortgage Closer Responsibilities And Duties

    Avoiding Wire Fraud in the Mortgage Closing Process â consumerfinance.gov

    Prepare loan closing packages to ensure correct loan settlement and complete loan documentation.

    Review mortgage loans to analyze outstanding items before closing.

    Schedule loan closing and issue loan funds.

    Address customer queries related to loan closing process.

    Assist Closing Agent and Bank Personnel in problems concerning loan closing.

    Determine and present principal amount, interest rate and closing cost to customers.

    Coordinate with real estate agents, banks, loan officers, etc to collect documents required for closing.

    Prepare and audit loan closing documents.

    Ensure all conditions and regulatory requirements are met prior to closing.

    Prepare legal documents and closing instructions for loan closing.

    Monitor and analyze outstanding payments for loan closings.

    Perform loan closing process based on company policies.

    Hire and train staffs in loan closing processes.

    Read Also: How Much Net Income Should Go To Mortgage

    Mortgage Closer Duties & Responsibilities:

    • Maintaining a good schedule for closing schedules
    • Coordinating proceedings for mortgage closing
    • Resolving concerns, documenting issues, and managing problems
    • Ensuring all closing details comply with state regulations
    • Being an intermediary between both parties during mortgage closings
    • Collecting and ensuring all required documents are in order
    • Scheduling mortgage closing dates and ensuring all parties can participate
    • Using financial software for mortgage closings

    Consider An Associate Degree

    While employers may not require loan closers to have an associate degree, earning one may help you advance your skills and learn about federal requirements for loans. Consider earning an associate degree in business or finance. While completing your degree, you can take courses that teach you about the different types of loans, loan processes and mortgage requirements. While applying for loan closer positions, you may use this knowledge to show that you’re a well-qualified candidate for the role. Completing a degree may also help you prepare to pass certification exams.

    Don’t Miss: How To Qualify For More Money For A Mortgage

    Mortgage Closer Job Duties

    A mortgage closer typically has a wide range of responsibilities, which can include:

    • Reviewing loan applications to ensure they meet criteria set by the bank or mortgage company
    • Coordinating with appraisers to ensure that appraisals are performed accurately and according to industry standards
    • Communicating with other members of the loan closing team, including the loan officer and title agent, to ensure that all tasks are completed on time
    • Preparing contract documents for review by lawyers and lenders, including the HUD-1 settlement statement
    • Coordinating with title companies to ensure that title searches and titles are in order before closing
    • Calculating loan payments based on interest rates and terms provided by the borrower and seller
    • Calculating taxes on interest earned on mortgages to determine taxes due at closing
    • Determining the amount of money needed to cover closing costs associated with purchasing a home
    • Assisting with negotiating and documenting loan terms such as interest rates and repayment schedules

    How To Become A Mortgage Closer

    Mortgage Closer T Shirt

    A career as a mortgage closer can be rewarding, but its important to consider the pros and cons before making a decision. As with any job, there are benefits and drawbacks to working as a mortgage closer.

    The main benefit of this career is that you will have the opportunity to help people achieve their dream of homeownership. You will also be able to make a difference in someones life by helping them buy their first home. This is an important role, and you will be making a big impact on peoples lives.

    On the other hand, this is a demanding job that requires long hours and hard work. You will need to be available at all times to answer questions and provide support to your customers. This can be stressful and exhausting, so be prepared for long hours and hard work.

    Related:How to Write a Mortgage Closer Resume

    Also Check: How To Get Approved For A Large Mortgage

    Use The Bank Account Listed On Your Application Before Closing

    In most cases, your lender will need to verify the source of your down payment and other closing costs. So, the mortgage funder will be looking for a cashiers check or wire transfer of your closing funds from the bank account you listed on your loan application. Pre-closing is not the time to transfer money out of your account or make large deposits unless you can verify the source.

    Is Being A Mortgage Closer Worth It

    As part of our A Day in the Life employee profile series, wed like to introduce you to Kathy Beatty, a mortgage closer based at our headquarters in Royal Oak, MI.

    This means making sure the client has their required investment ready, all of the mortgage documents are correct and the borrower receives their funds to close in a timely fashion.

    As the Vice President of Marketing and Corporate Communications at Ross Mortgage, Ericka is responsible for the planning, coordination and execution of all marketing activities.

    This position requires compliance with all mortgage regulatory requirements and Wells Fargo’s compliance policies related to these requirements including acceptable background check investigation results.

    It checks the candidates on scores of areas like monetary policies, repo agreements, mortgages, credit default swaps, treasury future contracts, interest rate swaps, modeling, Eurodollar futures and treasury debt securities.

    Read Also: How To Get A 500 000 Mortgage

    What Does A Mortgage Broker Do

    Were here to help! First and foremost, SoFi Learn strives to be a beneficial resource to you as you navigate your financial journey. Read more We develop content that covers a variety of financial topics. Sometimes, that content may include information about products, features, or services that SoFi does not provide.We aim to break down complicated concepts, loop you in on the latest trends, and keep you up-to-date on the stuff you can use to help get your money right. Read less

    Finding the perfect home to buy is no small feat: so many online searches and drive-bys or open houses. Then, for most, the time-sucking process of finding the right mortgage. A matchmaker called a mortgage broker can help.

    The broker goes fishing for multiple loan offers from different types of lenders in pursuit of the best deal.

    So what is a mortgage broker exactly? Keep reading for the answer, how to find one, and pros and cons of working with one.

    More articles

    Popular Articles