Ever wonder what happens to all of the papers you send in to your loan officer? You might be asking yourself: who does it go to and what do they do? They go to processing. Processing a VA Streamline requires lots of help from everyone from you, the home owner who sends in your required paperwork to the loan officer who you are working with to the processing department, it is a collaborative process. Once the loan officer has your current mortgage statement, a copy of your current note, social security and or ID cards, homeowners insurance or condo policy, survey and disclosures then your file goes to processing where the processor double checks everything and processes you VA loan.
The steps that are required in processing a VA Streamline home loan:
- Credit: The processing department must first pull credit with all three credit bureaus to determine what lender is best equipped to handle your loan. Processing makes sure that based off of your FICO that you are matched with the best lender for you.
- Title: A home title is the record of property ownership where the owner has the right to posses the property. The title company that processing uses is based on which state you are located in.
- COE: The COE which is the certificate of eligibility which is also formally known as the prior loan validation is run. Processing does this by go to the veteran’s information portal. The COE is an important part of a VA streamline because it proves to the lender that the veteran is eligible for a VA home loan.
- Case Number: The case number is also order on the veteran’s information portal website. The case number is just the assignment from the VA of an internal VA loan number. This number allows the VA to identify that your loan is in the VA system.
- CAIVRS: A CAIVRS which is the credit alert interactive voice response system. By using the borrower and co-borrower’s social security numbers it allows for processing to see if the borrowers are past default, have a claim, judgments or have any foreclosure records on government loans. If the borrower or co-borrower’s CAIVRS are rejected, then the borrowers cannot get a new government loan until they clear it up. This information is pulled using the HUD database.
- Payoff: A payoff is ordered by using the borrower’s current mortgage statement. The processor will call the current lender and issue a payoff request to be sent to processing so that the new lender will know how much the current principle balance is. The payoff determines how much it will cost to payoff your loan with your current lender.
- Mortgagee Change: Once processing knows who your lender is going to be and what the loan number on the new account will be, processing then calls the borrower’s insurance company to change the mortgagee. The mortgagee change requires the insurance company to change the lender information on an insurance policy. This is important so that the insurance company knows who holds the loan and if the account will be escrowed or not.
After all of these steps are finished processing gives your file back to the loan officer. These are the steps that processing works on when processing a VA streamline home loan.