When potential homebuyers are looking for their new dream home, they have a few different options of professionals standing ready in the market to assist them. There are mortgage brokers, real estate brokers, insurance agents, etc. During the home buying process, once a homebuyer has found their dream home and they need a loan product from their financial institution, the professional that they will need is a Loan Officer.
A Loan Officer is a representative of your bank, credit union, or financial institution. It’s the Loan Officer’s job to find you the best loan possible from the institution they represent. Keep in mind that it’s not their job to approve you for a loan. Those parameters are set by someone else and are usually part of a specific set of guidelines.
Once the Loan Officer presents you with the loan options, (loan products) available through their and your financial institution, it is them who will then be on hand to assist you through your application process. It’s also the Loan Officer who will organize with the institution’s underwriter who will assess your creditworthiness as a potential borrower.
If, when, you are approved for a loan, it’s the Loan Officer who will research and present to you the best products available through that financial institution. In order to do their job effectively, they have to have a vast and comprehensive knowledge of their institution’s loan products and the banking industry’s rules and regulations. They must also have an awareness of the current market climate, understand your application, and a fully functioning understanding of any paperwork or documentation going either way throughout this process.
They are your direct source of contact for your financial institution. This person will work with you during your application, underwriting, and approval process. They will also be the person with whom you’ll finalize any loan product paper work.
Loan Officers perform a wide range of services in their efforts to make your home buying experience as memorable and smooth as possible. They also bring to the table a vast expanse of knowledge, skills, and expertise. Thus, they receive compensation not just for their services but also for their knowledge. In most cases, they are paid through a commission and this is usually at a prepaid charge.