A loan officer is a representative of a financial institution who helps borrowers acquire a mortgage loan. They are the borrower’s primary contact with the bank. These representatives may also have different titles such as mortgage broker or mortgage consultant.
A loan officer will help determine how much of a mortgage you can be approved for. They can help you sort through options, explain some of the complex terminology. A good one will recommend a mortgage and loan amount that is right for you.
Although a loan officer has a responsibility to help you, its important to understand they get paid when you close your loan and they get paid more when your loan is larger. It’s important that you make sure that you are comfortable with the monthly payment, the down payment, and the total amount you are borrowing. You can use Bundle’s budgeting tools to help with this.
Your loan officer has a team of people that work behind the scenes to review your credit, order appraisals, and gather all the required documents you’ll need to sign at closing. They will not approve your loan. Banks have a separate group of people, underwriters, that will approve or deny your application.
It’s common to receive recommendations from your real estate agent. Real estate agents close a lot of deals and they know the good loan officers in your area. Make sure you receive multiple quotes so you get a fair deal on your mortgage.
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Read more Key Mortgage Terms.