In my opinion, having a loan officer who communicates well with you is more important than getting a good rate. After all, what good is a good rate if you don’t get the mortgage. So, searching for a good loan on the officer and a good mortgage company is very important. You need to have somebody that listens to you and explains things carefully. You need an advocate.
I just heard story regarding a buyer getting a loan. It illustrates one of the reasons you always have to do a little research beyond rates and points before selecting who will provide your mortgage. . An older gentleman came in to get a loan. He had money in the bank, great income, great credit and little bills. He should have qualified and very easily. However the title company found a tax lien for somebody with the same name. Unfortunately, the processor called the gentleman and told him to pay it off creating a severe stress for the poor man. For the next day of so, he thought he would not get his home.
A great loan officer to the rescue! The loan officer immediately went to work. She carefully read the title report and noticed a different middle initial She further researched and found that the social security number did not match. Everything was happily cleared up by the title company and the loan did go through successfully. A good processing staff at a mortgage company would have started researching before alarming a customer. Thankfully, a great loan officer saved the transaction.
This could have been the end of a sale. I don’t want you to go through that. Ideally the staff at the mortgage company with look for any discrepancy like a incorrect initial and start to investigate before calling the buyer. Then they would call call them saying that they are calling to get information to show that the lien doesn’t belong to buyer.
Time taken when selecting your loan officer before you start your loan and before you look for your home is vital. Remember there might be a bump or two along the way, you want someone that will bring you safely to your destination, the perfect home that you can afford.
An understanding of who is who at the loan company should help you find a good company and loan officer.
The Loan Officer is your personal advocate. He or she will be your first and most often contact. The loan officers job is to gather your history present and past. He gathers information from you regarding your credit, your income, your job stability, ability to save. With the information that you give him, he helps you select the loan with an affordable down payment and closing costs and monthly payment (interest rate). You will want feel comfortable discussing any times out of work, missed payments or problems on your credit. He can advise you if you need to pay off an old bill, improve your credit, explain employment gaps, how much money you will need and much more. He job is to get the information “to write the story” so when all the information is in the file you are the “good guy” who deserves and will pay for this house.
The Processor is the information gatherer and actual documention expert. The processor puts everything in order so that it is clear an understandable to the underwriter. The processor follows up on additonal paystubs, bank statements, appraisal, phone verifications credit report and title report. She examines and puts all the information in a logical order with all explanations as well as double checking to see if the file shows enough credit, income, savings to meet the requirements of the particular loan that you have chosen.
The Underwriter is the person who approves the loan. He or she makes sure that the loan meets all the guidelines of the particular loan that has been chosen. She will look at the information about your collateral, the new home. She looks for the correct amount of income, job stability, sufficient credit to show the ability to handle your house payments and bills, funds to close with some left over to live on.
Your loan officer is your first and main contact. His job is really to show that you can afford and have enough character to make the payments. He is there to help you make your case. If possible, get a referral to a good loan officer. Take time to talk to him a bit about any concerns that you may have about your ability to purchase. Make sure you are comfortable with him.