Verification

The loan processor must verify the applicant's qualification data, while simultaneously collecting the verification documents. Most verifications are written forms that are mailed or faxed to employers, creditors, landlords, banks, investment accounts and income sources.

For these verifications, the lender will send verification forms to the appropriate parties (borrower's employer, bank, etc.). However, the applicant can often save time by providing extra bank statements and pay stubs, as well as canceled checks for rent payments and copies of previous appraisals.

However, part of the verification process includes third-party reports, such as credit, appraisal and title insurance reports. The processor will request these reports from the appropriate parties.

Depending on the applicant's situation, the verification stage can last as little as two days to as long as three months. However, the typical verification period does last about two to three weeks. The report that requires the longest period of time is usually the appraisal, which usually takes 10 to 14 days to complete. Completed verification forms normally return to the processor within five days, as they are standard procedure for many institutions.

However, some verification forms—such as of mortgage debts, landlord confirmation and pension accounts—may take longer. Again, for faster processing, the applicant should prepare and provide necessary documents at the time of application.

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