Understanding the Key Role a Professional Loan Officer Plays in Homebuying

You want to make sure that your loan officer has 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 all of your questions.
• They talk about obtaining necessary documents from you during the process.

Your loan officer is 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.

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 paystubs, tax returns and bank statements.  

Application, Loan Structuring

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

Processing

Once you’ve found a home and gone under contract, a loan processor 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 ordering appraisals, making sure you obtain homeowners insurance, etc.

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.

Closing

The final step in the mortgage process is closing. Your loan officer will prepare the final loan documents and, along with the title company, your Closing Disclosure (CD). Once this is prepared, your loan officer 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.

Having a good loan officer can make or break your homebuying experience. They play an important role in making sure you have the best interest rate, but they also ensure a loan structure that will get approved and provide long-term financial security for you and your family. QCBN

By Greg Riordan

Greg Riordan is a loan officer with Legacy Mutual Mortgage. For additional information or to get in touch with Greg, visit legacymutual.com/officers/greg-riordan or call 928-427-5156. You may find his office at 325 W Gurley St #102, Prescott, AZ 86301. Greg cares about the people that choose to trust him with the biggest asset in their lives – their home. He will give straight, honest answers with exceptional advice whether you are refinancing your home to pay off debt, lower your rate, reduce the length of your loan or to purchase your first or next dream home.