What do loan officers do, exactly?
You have selected a mortgage company you feel will successfully secure the loan you need to purchase the house you can’t live without. Your selection is probably based on reputation, longevity and that all-important team captain, the loan officer (LO). Knowledge of the LO has come to you by way of your Realtor or other sources and you feel confident laying your financial life out before this trusted professional. You and your LO will soon know each other very well. Responsibilities are defined and duties of the LO and client are performed in unison.
At your first meeting, the available loan choices will be described and discussed until an intelligent decision is made together. Once you know which type of loan is best for you, the LObecomes your guide through the maze. The description “guide,” “teacher,” “confidant,” and even “friend” is what separates the experienced and historically successful LO from the crowd. He or she only receives such a title if it is deserved and validated by the community served. Along with the guidance comes follow-up like you have never known before. You can expect to be informed at every turn and your LO’s name will become a household word. This is the way it is supposed to work!
So, what are the officer’s responsibilities to you? Pricing and locking at the exact, most opportune and advantageous moment is primary. Without this ability, vast knowledge and, some say, talent, you will not get the best rate and terms. In addition to locking the loan, your LO coordinates with the underwriter and the processor the many facets that go into obtaining a mortgage loan.
Title work begins early on. A proficient loan officer will review the title and advise you of any concerning items. The appraisal is ordered and coordinated by your LO. And the closing date is set in compliance with the purchase agreement. Your “quarterback” works with title, appraisal, insurance, and underwriting people to lead the entire processing team to touchdown!
Your Realtor has expectations of the LOaswell. As you already know, your Realtor has your best interest at heart and demands high performance from all involved in securing your purchase. Your LOis expected to keep in close touchwith your Realtor, explain where the process is and what is needed for completion. The Realtor and LOperform as your very own all-star team!
Financing in today’s market is over the top with paperwork and seemingly unnecessary verifications for the borrow- er. The loan officer plows through this paperwork to lead you to a successful purchase of your newhome, with a minimum of stress.
Jim Gay was a real-estate broker for 20 years and has been a financial consultant to Fortune 500 companies. He is currently a broker/owner ofThe Mortgage Place, Inc. (986-9080) and can be reached at jim@ jimgayhomemortgage.com.