How a loan administrator will help get your loan approved
Every bank or financial institution that provides loans has a systematic process and structure in place. Loan officers are the executives who interact with the borrower and initiate the loan process. The loan administrator is the key person who handles loans and is the one who ensures the loan is processed and approved. A loan administrator is the one who can get the loan approved:
- The administrator processes the loan application and forwards it for approval.
- In some cases, the administrator may be a third party.
- The administrator does a thorough check before approving the application.
- Applicants need to interact with the administrator to get their loan approved.
What does a loan administrator do?
A loan administrator is the executive who processes the loan. The first step in the loan process is where the applicant submits an application for the loan. The person with whom the applicant deals is the loan officer. The loan officer receives the application, checks if all the required documents are submitted. He does an initial check for completeness and then creates a file for the applicant with the application, documents and sends it to the loan administrator.
The loan administrator is a liaison between the loan officer and the underwriter who prepares and disburses the loan. The administrator is the one who is responsible for taking a decision on whether the applicant is eligible to take the loan and whether the loan should be given or not. Once the loan is approved, the administrator’s job doesn’t end. He has to continue monitoring the loan until it is closed.
The administrator may be a different entity
In most banks, the administrator is part of the organization setup. However, many private lending institutions may outsource the administrator’s job to a third party or an external agency. In this case, the loan administrator acts as an intermediary between the borrower and the lender. The administrator’s job is to verify whether the applicant is eligible for a loan and once a decision is taken, he ensures the loan is released. The administrator agency also collects the loan payment from the borrower and remits to the lender.
How the decision is taken
The loan administrator scrutinizes the application to understand more about the applicant. He has to check the background of the applicant, his job, salary or earnings, find out what assets the applicant owns, what are his liabilities and verify the credit score. All this is done to ascertain whether the applicant has the ability to repay the loan. If it is a home loan, documents pertaining to the property needs to be verified to check if everything is in order.
The loan administrator can reject the application if he is of the opinion that the applicant does not have the ability to repay the loan or does not meet the criteria of the lender. In many cases, the administrator can call for additional documents or information before taking a decision. Where required, the administrator may physically inspect the assets of the applicant and have a personal interview before taking the decision.
So, it is the administrator who processes the loan application and takes a decision on approval of the loan. Applicants, therefore, must take the assistance of the loan administrator to get the loan approved. They need to talk to the administrator and find out what documents or evidences he needs to approve the loan and ensure that it is provided.
To easily get a loan approved, applicants need to get in touch with the loan administrator and find out the procedure for approval and ensure that they comply with the same and submit all information needed so the loan gets approved easily.
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