It's the Loan Officer not the Lender

Getting a Home Loan Can be a Hassle — How to Make It Easier

The ugly truth about getting a home loan? It can be a hassle.

There are documents to provide, deadlines to meet, questions to answer, and potential problems that can pop up along the way.  But the right loan officer can make the process much easier.

The key thing to understand is no matter who the lender is--it's the (MLO) mortgage loan officer -- that makes for a smooth loan process.  

Think of a car racing as an example.  The better the race car --the better the chance of winning, however the skill & experience of the driver is what makes the difference!  And big lenders and banks can't keep the "best drivers" (loan officers) since they typically pay them a lot less than what they can earn as a mortgage broker.  And because a mortgage broker's overhead is so low, they don't need to charge a borrower as much, resulting in lower rates than banks and big lenders.  

What to know

One simple way to evaluate a loan officer is by the acronym CAKE:

Communication — Ability — Knowledge — Experience

1. Communication

A good loan officer should communicate promptly and explain loan numbers, requirements, and options in language that's easy to understand.

Communication shouldn't stop with a quick phone conversation. Important information should also be documented through texts or follow-up emails when appropriate so you understand exactly what is happening with your loan.

Availability matters too. Real estate doesn't operate only from 9 to 5. Questions and issues frequently come up after hours and on weekends, so having a responsive loan officer can help keep the transaction moving.

2. Ability

Communication is important, but your loan officer also needs the ability to recognize and solve problems.

An experienced loan officer should be able to review your financial situation and the property you're purchasing, identify potential trouble spots, and explain what needs to be done.

Finding a problem early gives everyone more time to solve it.

The last thing a home buyer or real estate agent wants is to discover a major qualifying or property issue just before closing.

3. Knowledge

Mortgage lending involves hundreds of guidelines covering income, credit, assets, property requirements, appraisals, underwriting, and individual loan programs.

A knowledgeable loan officer should understand these rules, stay current as guidelines change, and know how they apply to your particular situation.

Having the right answer early in the transaction can prevent unnecessary delays and surprises later.

4. Experience

Mortgage knowledge becomes much more valuable when it's combined with real-world experience.

Every loan is different. Over time, an experienced loan officer sees unusual situations, difficult underwriting issues, property problems, and complicated borrower scenarios.

That experience can help a loan officer recognize potential problems before they become problems and determine the best way to address them.

Years in the mortgage business alone don't necessarily tell the whole story. The number and variety of transactions a loan officer has successfully handled can be just as important.

5. Choose Your Loan Officer Carefully

You have a choice when deciding who handles your home loan.

Ask questions. Expect detailed and accurate answers. Make sure your loan officer communicates well and has the ability, knowledge, and experience necessary to handle your transaction.

Getting a home loan may always involve some hassle—but choosing the right loan officer can make the entire process a lot easier.

Remember CAKE: Communication — Ability — Knowledge — Experience.