Mortgage loan officers work for banks, credit unions, or mortgage companies, and assist borrowers with obtaining a mortgage to finance the purchase or refinancing of a home or other real estate. This post outlines their main responsibilities.
Understanding loan types
To start, mortgage loan officers help borrowers understand the different types of mortgage loans available to them. This includes fixed-rate mortgages, adjustable-rate mortgages, jumbo loans, and government-backed loans. They may help to explain the benefits and drawbacks of each type of loan and help borrowers determine which type is most appropriate for their specific situation.
Completing the application
Once a borrower has selected a mortgage type, the mortgage loan officer helps them complete the application process. This includes collecting information about the borrower’s income, employment, assets, and debts, as well as running a credit report. Based on this information, the mortgage loan officer determines whether the borrower meets the lender’s eligibility requirements and how much they may be qualified to borrow.
Further Reading – Mortgage Commitment Letter: All You Need to Know
In addition to assessing the borrower’s eligibility, mortgage loan officers also help borrowers understand the costs associated with the mortgage loan. This includes the interest rate, origination fees, points, and other closing costs. They help borrowers compare different loan offers to find the most affordable and suitable option for their needs and budget.
Further Reading – Closing Costs: Additional costs to be aware of when financing a purchase
Throughout the loan application process, mortgage loan officers serve as a liaison between the borrower and the lender. They communicate with underwriters, processors, and other departments to ensure the loan is processed accurately and efficiently. They also keep borrowers informed about the status of their loan application and any required documentation.
Further Reading – Mortgage closing checklist: Close confidently
When the loan is ready to close, the mortgage loan officer may attend the closing with the borrower to explain the terms of the loan agreement and answer any questions the borrower may have.
Further Reading – What happens at a real estate closing?
Photo courtesy of 11 Hoyt.