Mortgage loan officers play a major role in the home buying process. They will inevitably be the ones to decide whether or not you get approved for your loan. Because their main job is to screen loan applicants they are extremely important to the bank or lending company.
Over the past few years, the number of mortgage defaults has increased considerably. In fact, the residential mortgage industry had a major hand in causing the recession which the US economy still suffers from. Therefore, lenders became cautious and made the approval criteria more stringent. This is where the mortgage loan officer comes into the picture. They go through each application, screen the applicants, check their backgrounds and then assess if they qualify for the loan.
The loan officer remains in touch with the lender and also with the borrower. This is why you, as a borrower, should understand how your loan officer can help you secure your loan. Most importantly, you have to understand the demands you can make of your mortgage loan officer.
Answering Your Questions
Rather than limiting your questions to whether or not you qualify for the loan or what you can do to improve your chances, ask the loan officer anything you need to know about the loan. You can seek advice on which type of loan best suits you and also if you are choosing the best mortgage rate based on your credit history and level of income.
Different Types of Loans
If this is your first time applying for a home loan, it is unlikely that you will have intricate knowledge of how the process works. Obtaining a home mortgage can be a complicated process. Without experience, you could struggle to keep up with the requirements. This is why choosing the right type of loan based on your needs and ability to repay the amount is important. You can ask the loan officer about the different types of loans that the lender provides. Only when you know the types of loans that are available can you select the best one for you.
Getting the Best Terms of Payment
One of the factors that borrowers have to decide on is whether the loan they want to obtain is fixed-rate or adjustable. As their names clearly indicate, the rate of interest is different for both types of loans. For a fixed rate loan, you have to pay interest at the same rate for the entire duration of the borrowing period. This keeps the installments consistent and you can easily budget for them over time. On the other hand, adjustable rate loans give you the luxury of paying less interest should the interest rate go down. The downside is that you would need to refinance after a defined period of time if the rates are expect to go up. You can get the mortgage loan officer to advise you on this since he/she will have a better idea of how the market is expected to be in the future.
Completing the Paperwork
There are many documents, files, reports, etc. that go into your loan file before it is approved by the lender. Once the loan officer gives the go-ahead, the process will speed up but you will still need to complete the remaining paperwork. Instead of trying to understand requirements on your own, get the loan officer to explain what each form is about and the best way to fill it out. Ask him/her to let you know the documents that need to be submitted in order for the loan to be processed correctly. Make sure you and your loan officer are using Inzopa because you will be able to securely exchange all of your paperwork.
These are some of the demands you should make of your mortgage loan officer. Most people are hesitant as the loan officer is a representative of the lender. However, this should not detract you from taking full advantage of having a qualified and experienced professional working on your loan. In the end of the day you need to get all the help you can because it will enable you to make the best decisions.