Whether you are purchasing your first home, refinancing, or upgrading to your dream home, your Loan Officer (LO) is a crucial player in a successful home purchase. They are responsible for overseeing the entire financial transaction and ensuring that your loan is ironclad.

Kind of an important job, right?!

Knowing what a Loan Officer actually does will help you know if you are working with an all-star or a dud. When it comes to your financial future, you can’t afford to fill this role with anything less than the best!

Earn Your Business

First, your Loan Officer is responsible for earning your business. Just because you sat down and talked to a mortgage loan originator doesn’t mean you have to work with them. You want to make sure they have your best interest at heart, that they are experts in their field, and that they have a clear process. Here are some key things to look for when meeting with a Loan Officer.

• • You feel comfortable with them.
  • They emphasize pre-approval.
  • They know and can explain different loan guidelines.
  • They clearly explain their process to close your loan, including fees involved.
  • They patiently answer any of your questions.
  • They talk about obtaining necessary documents from you during the process.

Obtaining a home loan requires gathering a lot of details, but a good Loan Officer will make the process smooth, organized, and clear. The last thing you want to do is go under contract and have your loan fall through. But, if your LO is exhibiting the qualities above…

Structure & Oversee Your Loan

Your Loan Officer is responsible for structuring and overseeing your loan. Basically, that means they are the get-into-your-new-home ninja.🥷

Loan Officers are responsible for much more than just a simple financial transaction – they facilitate things like ordering the appraisal, sending disclosures, ordering the title work, and tracking every step of the home buying process (including home inspections and contract finalization). Generally speaking, your Loan Officer will manage these stages of your Loan:

Pre-approval 

Your Loan Officer will help you get pre-approved by taking a comprehensive look at your finances. This will require obtaining various documents from you such as pay stubs, tax returns, and bank statements.  

Application & Loan Structuring

Your LO will help you apply for and obtain the best home loan for your financial situation. They are responsible to know the guidelines for various loan types and help you lock in the best possible interest rate. Your LO will also structure your loan to include details like your loan terms and repayment schedule.

📣PSA: An incorrectly structured loan will bite you in the you-know-what down the road. Your LO should be able to explain all the loan terms to you, why they are the best terms for you, and you should see those details in writing!

Processing
Once you’ve found a home and gone under contract, a loan processor (different from your Loan Officer, but on the same team!) will verify that all pertinent documents are obtained and organized. During this stage, you may be asked for additional financial documents, and your Loan Officer will be doing things like order appraisals, make sure you obtain homeowners insurance, etc.!

Click here to view ALL the steps your LO monitors! 

Underwriting

After processing is complete, a loan underwriter will verify – based on all documents provided – that you are financially capable of making the payments your loan terms require. Once underwriting is complete and your LO verifies that every little thing is squared away, you will get cleared to close!🏡

Closing

The final step in the mortgage process is the closing. Your LO will prepare the final loan documents and – along with the title company – your Closing Disclosure. Once this is prepared, your LO will contact you to review as well as discuss the funds needed for closing.

A good Loan Officer will not allow any surprises to pop up at the closing table. When you sit down to close on your loan, you should be completely confident and well-acquainted with the paperwork you are signing!✍🏻

Do you see why having a good loan officer can make or break your home buying experience? Offering the best rate means nothing unless the Loan Officer can back it up with the chops to get your loan closed. They play an important role in making sure you have the best interest rate, but they also ensure a loan structure that will actually get approved and provide long-term financial security for you and your family.

Contact us today and start working with one of our stellar Loan Officers. We are here to help you make your home purchase with confidence and ease.