The ugly truth about home loans. They're a hassle!
Reducing this hassle can make the process more tolerable.
Streamline the loan application process with CAKE. The abbreviation CAKE outlines the essential qualities required by a loan officer. Possessing these qualities enables a loan officer to minimize complications, offer comprehensive explanations, and deliver a home loan journey that meets the expectations of every home buyer or refinancer. CAKE stands for:
Communication -- Ability -- Knowledge -- Experience
Communication
It is important for a loan officer to respond promptly, provide clear details, and answer all questions accurately and quickly. They should use phone calls, texts, and follow-up emails to document and further explain answers and information. 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 questions at any time, including after hours and on weekends. Since most communication between home buyers and agents occurs outside regular business hours, having a loan officer who is only available during business hours can cause delays and complications in the loan process.
Ability
Communication involves putting in effort, whereas ability is either innate or gained through experience. For a loan officer, it is crucial to possess the skill to swiftly assess a home loan scenario, identify any concerns regarding a home buyer's eligibility, and scrutinize the property they are considering. Subsequently, they should be able to articulate the necessary steps to address any challenges. I frequently hear from agents and buyers who express surprise at facing unexpected hurdles or rejections towards the end of a deal. A loan officer must have the foresight to predict potential obstacles and assist both the agent and home buyer in preparing to tackle them.
Knowledge & Experience
Knowledge and experience are closely connected, as one is meaningless without the other. This brings to mind a quote that resonates with this idea...
“Knowledge without experience is merely philosophy; experience without knowledge is ignorance.”
To acquire a thorough understanding of home loans, one must dedicate time and effort to quality education and training, keep up with the latest rule modifications, and continuously learn from interactions with other real estate and mortgage experts. Seasoned professionals often highlight that real-world experiences, including making mistakes and learning from them, are the most effective ways to enhance knowledge. The top professionals consistently strive to comprehend the intricacies of transactions to avoid repeating errors and provide superior service to borrowers and referral partners.
Expertise is acquired over time through numerous home loan transactions. Simply having 20 years of experience as a loan officer does not guarantee a high volume of closed transactions or the expertise required to excel in the field. It is possible for someone to coast through their career for years, relying on colleagues to cover for them without putting in the effort to acquire the necessary knowledge.
You have the freedom to select the loan professional you collaborate with. Make inquiries, insist on receiving thorough and precise responses, and choose carefully!