What does a Mortgage Loan Officer do?

If you want to borrow money against real estate, you need a mortgage loan officer. A mortgage loan officer is your representative to the investors that are willing to lend money on real estate. Your loan officer can negotiate a loan for the purchase of a new or investment property and can also help you get a better interest rate or capitalize your equity. Equity is the difference between what you bought the property for and its current value. For example: If you purchased a home for $200,000 and it is now worth $400,000 you have $200,000 equity plus whatever amount you have paid down the mortgage so far. You can borrow up to 80% of your value which is $320,000 in this case. You would have at least $120,000 to use for a new roof, home repairs, pay off higher interest debt, build a pool, add a room, the possibilities are endless.

A mortgage loan officer is your first point of contact in beginning this process. That person is your advocate in the loan process, from the beginning to the end. Be prepared to ask your loan officer all of your questions big or small. A good loan officer should have patience, understanding, and excellent communication skills. Every situation is unique, and each mortgage loan is not the same. There are multiple factors in every mortgage loan. Here are a few: the amount of the loan, your streams of income, how you receive your income, type of debt you already have, your current debt load, location of the home you are purchasing or refinancing, tax documents, having a co-signer, credit score etc.

Your loan officer will ask for your personal credit information and several questions about your home, income, and goals. After the application is complete your loan officer will discuss interest rates and length of repayment terms with you. After you settle on the terms the loan officer will lock in your interest rate. Interest rate locks are important because they provide stability in the loan process. You will not have to pay a higher rate if the rate increases before you close and you will also not benefit from any decreases in the interest rate. A good loan officer is familiar with the rules, regulations in accordance with Federal guidelines and state mandates. Once every document is uploaded the underwriter inspects and reviews the documentation according to laws and regulations in a timely manner and submits all the documentation to the investor for approval. The loan process can be incredibly smooth and painless when working with the right individual. Communication and trust are so important in choosing the right Loan Officer. Can you get a hold of your loan officer when you need help or have a question? Are they a good communicator? Can they break down calculations and communicate to you what every line means? Depending on your loan it can be a lot of documentation verification, communication back and forth but through a steady process and the right advocate for your loan the end results are well worth it!

Your loan officer will be the person who will be in contact with your realtor, the underwriter, title company, attorney, etc. This is why it is so important to be sure to work with a seasoned and experienced loan officer that understands your needs and goals with your loan. A good loan officer is able to drive every part of the process and ensure that things like underwriting, title work and the appraisal/inspections are completed as quickly as possible. When you are purchasing a home you have a lot to worry about. The loan process should not be on that list of worries and a great loan officer will feel like a close friend when it is all said and done. So, when starting the process be sure to consider all of these factors and choose the right loan officer for you.