The ugly truth about home loans. They're a hassle!
Reducing this hassle can make the process more tolerable.
And you can make the loan process easier with CAKE. The acronym CAKE represents the qualities a loan officer needs to possess. With these qualities, a loan officer can reduce hassle, explain everything and provide a home loan experience every home buyer or refinancer deserves. CAKE stands for:
Communication -- Ability -- Knowledge -- Experience
Communication
A loan officer should respond promptly, providing clear and easy-to-understand details, and be prepared to answer all questions accurately and swiftly. They should make use of phone calls, texts, and follow-up emails to document and elaborate on answers and figures. One common complaint from home buyers and refinancers is the lack of explanation and delayed responses from their loan officer. A loan officer should be available to address your inquiries promptly, even outside regular hours, including weekends. Since most communication between home buyers and agents occurs outside standard business hours, having a loan officer from a bank or one who is only accessible during business hours can often cause delays and complications in the loan process.
Ability
Communication involves putting in effort, while ability is a trait that one possesses either innately or through experience. For a loan officer, it is crucial to possess the skill of swiftly assessing a home loan scenario, identifying any concerns or potential challenges in the home buyer's eligibility criteria and the property they intend to purchase. Subsequently, the loan officer should be capable of articulating the necessary steps to resolve any identified issues. I frequently receive feedback from agents and buyers who express surprise at encountering last-minute hurdles during a transaction, or even facing rejection. Therefore, a loan officer should have the foresight to anticipate potential obstacles and assist both the agent and home buyer in preparing to address them effectively.
Knowledge & Experience
Knowledge and experience are closely connected, as one is meaningless without the other. This brings to mind a quote:
“Knowledge without experience is just theory; experience without knowledge is blind.”
Obtaining a thorough understanding of home loans requires dedication - investing time in quality education and training, staying informed about the latest rule changes, and continuously learning from interactions with other real estate and mortgage professionals. Seasoned professionals often emphasize that nothing accelerates knowledge acquisition like real-world experience, where mistakes are made and valuable lessons are learned. The most successful individuals consistently strive to comprehend the intricacies of transactions, ensuring that errors are not repeated and enabling them to better serve borrowers and referral partners.
Expertise is acquired through time and numerous home loan deals. Simply having 20 years of experience as a loan officer does not guarantee the closure of thousands of transactions or the expertise required to excel in the field. It is possible for someone to sustain their career for years by relying on colleagues to constantly assist them, without putting in the effort to acquire the necessary knowledge.
You can always choose the loan professional you work with. Ask questions, demand detailed, accurate answers and choose wisely!