Starting the homebuying process is a huge milestone you should be proud of! More than likely, you’ve planned and researched prior to entering the real estate market. You may have heard ‘loan officers’ mentioned during that research since they play an integral role in homebuying. But what exactly does a loan officer do when it comes to who’s who in the homebuying process? Understanding your loan officer’s role can help streamline the process for a smooth transition into homeownership.
What Does a Mortgage Loan Officer Do?
A mortgage loan officer is a licensed professional who works with an independent lender or bank to assist homebuyers with applying for a mortgage. Loan officers are highly trained to understand the banking regulations for your specific state, the mortgage products available, and the required documentation for loan processing. When you enlist the help of a loan officer, you have an expert on your side to provide personalized advice for your unique situation and to navigate the nitty-gritty of mortgage programs and loan terms.
Who’s Who in the Homebuying Process: When to Talk to a Loan Officer
Getting started with your home purchase can feel like a whirlwind experience that leaves you wondering, “Who do I talk to first?”
While some borrowers first talk to a real estate agent to view homes, it’s typically a good idea to consult with a loan officer first. Your loan officer will complete a screening process to determine if you qualify for a loan based on your financial history and creditworthiness.
If you decide to move forward with your home purchase after the screening, your loan officer will help you navigate the mortgage process. This process includes:
- Pre-approval
- Mortgage Application
- Loan Processing
- Underwriting
- Loan Closing
Prepare to Speak to a Loan Officer
Now that you know the integral part your mortgage loan officer plays you may wonder how to prepare for your consultation with them. While they will guide you through the mortgage process, consider doing the following to prepare:
Gather Financial Documents
As mentioned, your loan officer will determine if you qualify for a loan during the screening process. It’s a good idea to have your financial documents, like W2s, paystubs, and bank statements, readily available.
Lower Debt
If possible, lower debt before starting the loan process. Lowering debt can improve your credit score and decrease your debt-to-income ratio. However, don’t let debt scare you away from starting the mortgage process. Different loan programs have varying DTI guidelines that you may still qualify for.
Write Questions/Goals
When meeting your mortgage loan officer for the first time, it’s a good idea to have pertinent questions and our goals in mind. That way, you can work together to select the best mortgage program for your needs.
Remember, your loan officer is there to help you and is the main point of contact throughout the home buying process. That means your lender is the liaison between the other mortgage professionals and can streamline the process for you.
Loan Officer, Julie Krumholz from Superior National Bank
Julie Krumholz is no stranger to what goes into the home buying process for a smooth transition to homeownership. For over 35 years, Julie has been a trusted resource and friend to homebuyers. Julie has worked in processing, closing and loan origination, underwriting, QC auditing and has even co-owned a mortgage brokerage firm! She strives to provide the best mortgage experience to first-time home buyers and seasoned homebuyers alike.
Call Julie at 586-382-5482 for all of your home buying needs!
