If you're just starting or just finishing loan officer school or loan officer training, you might be curious as to what some of the secrets of a successful mortgage loan officer might be. This article hopes to share some trade secrets to make you the best mortgage loan officer possible or even negotiate it yourself without a license.
What does a mortgage loan officer do?
Basically, a mortgage loan officer is just the face of the company. Mainly, he or she just accepts the application and passes it on to the underwriting department. More independent loan officers, however, provide additional services like recommending appropriate loan types, gathering documentation, communicating directly with the underwriter and helping the process along.
What happens if you don't use a mortgage loan officer?
Banks are often out for themselves, so they might not provide you with the best advice or rates. Mortgage rates are constantly changing due to the secondary market fluctuations. It's important to speak with an independent mortgage loan officer to help negotiate this constantly changing market.
Why are mortgage loans constantly changing?
As stated above, the vast majority of mortgage loans are sold on the secondary market. What this means is that, once the lender has given you money ("funded" your loan), they'll most likely sell it to an an investor for cash at a profit. Once sold, your loan will be bundled together with thousands of other similar loans and turned into a bond called a Mortgage Backed Security (MBS) bond. This bond will continue to be bought and sold by investors and works like a stock would, fluctuating daily due to market security.
What should I be looking out for?
Depending on the length of your loan, you'll want to pay attention to the terms rates, points, and fees. People with shorter loans will want to focus on finding a slightly higher rate that pays out a larger rebate. Conversely, if you plan on having your loan for a longer amount of time, you may want to pay out points. With fees, pay attention to why they're being charged and speak with a qualified mortgage loan officer to see what your best options are. There are many fees out there - lender fees (charged for document prep, processing, underwriting, etc), and third-party fees (escrow, appraisal, recording, title, notary, etc.). Ask for a written estimate.
What factors will help me get a better loan?
Most lenders will look at debt to income ratio (DTI). Your income obviously plays a huge factor in getting a loan with a good rate. They also evaluate loan to value ratio (LTV). To improve your changes, speak with a mortgage loan officer with good mortgage loan training to help you get organized and make sure that you're qualified before applying. You may need to work on your credit score first.
In summary, a mortgage loan officer with good mortgage loan training will greatly increase your chances of being approved and getting a good loan rate.
Check out this link for more informations: http://www.moneycrashers.com/getting-approved-mortgage-loan/