A loan officer is an expert who assists in choosing the ideal loan option that suits you best. Also known as a mortgage banker, mortgage consultant, a loan originator, and more, the goal of a loan officer is to guide you through the financing side of purchasing a home.
Simply put, a loan officer collects and reviews the details and documents of their clients to determine if they qualify for a loan. With many homes selling beyond the usual prices in today's housing market, a loan officer can help you understand and maneuver new environments.
But the question remains: why do I need a loan officer? Let's find out:
1. Explain the Home Buying Process
Buying a home is not as easy as it sounds to some people, and to most people it doesn't sound easy at all. It involves a process requiring you to find a property you want to purchase, secure the funds, make your offer, inspect the home, and seal the deal. Your loan officer will explain everything in advance to give you all the information needed to close the deal.
Throughout the home buying process, there are a significant number of questions that come up from buyers:
- Which is the best loan option for me?
- Why should I enlist a real estate agent?
- Are there any extra costs I should expect?
Your loan officer will answer all these questions and more to ensure a smooth and comfortable home buying process.
2. Provide a Financial Checkup
Every year, we visit our physician for an annual checkup, so why not make it a habit to do a financial checkup? Yes, A financial checkup is crucial throughout the home buying process. A loan officer can review your financial information to advise you on the best course of action. The checkup aims to help you save up some cash or even reduce the monthly payment.
3. Look Out for Your Interests
As an expert with more than 30 years of experience in finance and housing, it's our job to look out for your interests. Our loan officers will help you decide where to purchase your home and secure you from scammers.
N/B: Every loan officer has a fiduciary duty to their client.
4. Help You Avoid Foreclosure
Now and then, we experience financial hardships. If we do nothing about it, we may find ourselves in a tight spot and behind on our mortgage payments, leading to foreclosure. You won't have to go through such hardships with a loan officer by your side. They will connect you to a good servicing department that will advise you on options for avoiding foreclosure.
5. Coach You on Down Payment
Generally, 20% is the down payment when purchasing a house, but that doesn't apply everywhere. It's always recommendable to place a 20% down payment to avoid paying mortgage insurance. Still, with the many loan options available in today's housing market, it's less common for buyers to purchase their first home and live there permanently. So, if you don't plan on living there permanently, it's best not to hand over the full 20% down payment.
Your loan officer will coach you on how to raise the down payment. Never use up all your money since you won't have enough money to move, along with extra fees that come up unexpectedly. Your loan officer will also advise you on ways to account for the extra costs.
Our Loan Officers Are Here to Help
Whether you want to purchase your first house, relocate, or need a financial checkup, a loan officer can help. The best thing to ensure you and your lender are on the same page is to get your mortgage pre-approved first. From there, your First Savings Mortgage Loan Officer can do the rest. Call us anytime to get acquainted with one of our expert loan officers or if you have any inquiries.