What Does a Loan Officer Do?
Whether you’re buying your first home, refinancing, or upgrading to your dream home, a loan officer is a critical player in a successful purchase. They oversee the financial transaction and ensure that your loan is approved; it’s a very important job!
Understanding what a loan officer does will help you decide if they will meet your needs. You can’t afford anything less when making the biggest purchase of your life.
Earn Your Business
Your loan officer is responsible first for earning your business. Meet with multiple candidates to ensure that the loan officer has your best interests in mind, that they are knowledgeable about their field, and that there is a transparent process. When meeting them, you should ask a loan officer these critical questions.
Are you comfortable with them?
Do they emphasize pre-approval?
Can they explain the different loan guidelines?
Have they clearly explained the process of closing your loan and any fees?
Did they discuss obtaining the necessary documents from you during the process?
Have they been patient enough to answer your questions?
Purchasing a home entails a lot of details. A good loan officer will help you make the process easy, clear, and organized.
Structure & Oversee Your Loan
Your loan officer is responsible for structuring and managing your loan, ensuring your home buying process goes smoothly. The responsibilities are far more than financial transactions – they order the appraisal, send disclosures, order the title work and track every step of the home-buying process (including contract finalization and home inspections).
Your loan officer facilitates the following stages:
Pre-approval
Your loan officer takes a detailed look at your finances and helps you get preapproved. You will need to supply various documents, such as bank statements, tax returns, pay stubs, and tax returns.
Loan Structure – Application and Loan Structuring
Your loan officer helps you get the best loan for your financial situation. They are well-versed in the guidelines for different loan types and will help you secure the best interest rate. Then, your loan officer will structure your loan to include details such as your loan terms and repayment plan.
A poorly structured loan can cost you dearly in the long term. Ask your loan officer to explain the loan terms and why it’s the best option for your circumstances.
Processing
After you have found a home and signed a contract, a loan processor will be assigned to you (different from your loan officer, but on the same team!). You will need to verify that all documents have been obtained and are organized. In this stage, you may be asked for additional financial records while your loan officer will order appraisals, ensure you obtain homeowners insurance, etc.
Underwriting
After processing is completed, a loan underwriter will verify – using all documents provided – that you can afford the loan terms. Finally, after underwriting is completed and your loan officer verifies that everything is in order, you will be cleared to close on your loan!
Closing
Closing is the last step in the mortgage process. Your loan officer prepares your closing disclosure and the final loan documents. After document preparation, your loan officer will contact you to discuss and review closing costs.
An experienced loan officer prevents surprises from popping up at the closing table. When it’s time to close your loan, you should be confident and understand the paperwork you are signing!
Trust Pacor Mortgage
A loan officer can make or break your home-buying experience. They ensure you get the best interest rate, approve your loan structure, and provide financial security for you, your family, and future generations. Pacor Mortgage can help you purchase your home with confidence and ease.
Contact one of our loan officers today at 773-881-7744 to schedule an appointment or visit our website to start your mortgage application.
