So, you want to purchase a home and need to decide on a loan officer to help you through the loan process, but you're not quite sure what to expect. Well, overall a good loan officer should act as your liaison during the entire loan search, application, and approval process.
Typically they will conduct and organize the following:
- Conduct a thorough evaluation of your financial solvency, including a detailed analysis of their credit history and verifying all stated income and employment.
- Investigate the current mortgage loan market to find the type of mortgage that will meet your needs.
- Complete the application for a mortgage loan pre-approval.
- Compile your required documentation, including bank statements, employment history, current pay stubs, and income tax return copies from the last few years.
- Complete a lender application form.
- Explain all of the legal disclosures to you.
- Submit all necessary documentation and material to the lending institution.
Basically, your loan officer will act as your representative when dealing with the financial lending institution. They will be your primary resource for understanding the mortgage loan contract language, lender and escrow company requests and requirements, and the myriad of other questions or concerns that may come up during the loan approval process.
Your loan officer should also explain different loan options to you and keep you informed on the current rates, which vary between lending institutions. The rate will be calculated based on your personal financial circumstances, the amount of the loan requested, the value of the home in question, and a few other variables, including your credit score.
A good loan officer will also have the most up-to-date information on all lending institutions, and are there to negotiate the absolute best rate on your loan as possible.
The loan approval process is often an intimidating and overwhelming experience. But establishing a good relationship with your loan officer can help make the process more straightforward and much less stressful.