What Exactly Do Loan Officers Do?
As you navigate your home buying journey there are many different people you will work with throughout the process such as loan officers, realtors, and more. Since each of them have their own distinct role, it’s important you know what they do so you can feel confident every step of the way. At MHS Lending, we have a team of loan officers who are experts in working with military families and veterans. We’ve broken down the ins and outs of what loan officers do so you can know just what to expect.
What is a loan officer?
A loan officer is someone who works for a bank, credit union, or an independent lender that helps borrowers obtain a loan. For most people who work with loan officers, they do so because they are buying a home. Mortgage loan officers will need to gain access to the intimate details of your finances, employment status, and more in order to pre-approve you for a set amount and help you navigate the loan process. For people who are looking to buy a new home, working with a loan officer you can trust is incredibly important.
What loan officers need to know
According to Investopedia, loan officers must have a comprehensive knowledge of lending products, the banking industry rules and regulations, and the required documentation for obtaining a loan. Loan officers that are helping military families or veterans obtain a VA Home Loan should also be experts on the requirements set out by the Department of Veterans Affairs as well as the ins and outs of military income and eligibility.
Loan officers work directly with consumers
While many things can be done online nowadays, most people prefer to have a knowledgeable person that can help them navigate a complex transaction like a home loan. That is why banks and lenders have loan officers in the first place. These experts are the main point of contact for buyers throughout the loan process from pre-approval to closing. They can assist borrowers in choosing the right loan product for them, will clearly explain all the paperwork that is needed, and is available to help explain how the process works from start to finish.
Loan officers and underwriters
There is a common misconception that loan officers are responsible for analyzing all paperwork and making final decisions on loans. While they are responsible for initially screening potential borrowers, recommending loan products, determining how much buying power they have, and helping them prepare the application, the underwriter is the one that assesses the creditworthiness of the potential borrower. Upon approval, the loan officer will collect all necessary documents from the borrower for the loan and prepare the loan closing documents.
Choosing the right loan officer for you
Since mortgages are some of the most complex loans to navigate and require a mountain of paperwork, it can be overwhelming for potential borrowers. If you’re looking for the right loan officer for you, it’s important that you feel comfortable and confident from the very beginning. Loan officers will offer advice based on your situation, wants, and needs and it’s vital that you trust the advice you are given is the best. Because this relationship is so important, many home buyers choose to work with the same loan officer each time they buy a new home or property.
For military families and veterans, you’ll want to ensure your lender is not only an expert in helping you navigate the loan process, but that they also have experience working with VA Loans. There are thousands of loan officers out there so it’s important that you don’t just pick the one that gives you the best rate, but instead do your due diligence and read reviews and testimonials in addition to setting up a consultation so you pick a loan officer you feel you can trust.