Avon has been a mortgage loan officer for 10 years.
How To Navigate The Mortgage Loan Process
person found Avon's experience helpful.
I originally entered the real estate field as a mortgage loan officer in 2004. After learning the ropes and becoming the number one salesperson in my office, I struck out on my own as an independent loan officer. Over the years I have handled millions of dollars in loan transactions for a diverse group of clients.
As a mortgage loan officer I often worked with people who were interested in purchasing a home. Purchase loans are always more complicated than refinances due to the fact that additional requirements, such as property inspections, appraisals, and even rental histories, come into play. My first attempt at processing a purchase loan came after having completed dozens of refinances. A friend of mine, a young lady 22 or 23 years old at the time, decided to purchase a home and contacted me to help her out.
While collecting all of her documents and getting her pre-qualified I asked her about her rental history and whether or not it could be verified. She assured me that it could. She had rented from a private individual and didn’t have an “official” rental history, so we needed to have her landlord fill out and sign a form. She and her real estate agent went to work looking for her future home, while I went to work processing her paperwork. One day my friend informed me that she had found a home that she liked, and before I knew what was happening she ordered an appraisal - at her real estate agent’s insistence. But the verification of rental history still had not been completed. I knew something was wrong.
This situation resulted in my friend not being able to purchase the home, as her former landlord continually refused to provide her with verification of having been a good tenant who always paid on time. Despite the disappointment, our friendship survived the situation. But this does point to a larger issue, which involves ensuring that real estate agents and loan officer always maintain open lines of communications.
Here are some valuable pointers to help ensure that your real estate agent and loan officer work together seamlessly:
• Work with a real estate agent and loan officer who know one another. - Often times those looking to purchase a home will either seek financing first or seek the property first, but rarely at the same time. This means that perspective buyers are far more likely to meet a real estate agent and loan officer separately than to work with a loan officer/real estate agent team. However, it is often better to work with a real estate agent and loan officer who are acquainted with one another, or even work with each other frequently. This will help cut down on costly communication issues.
• Only spend money when all prerequisites are met. - If possible, avoid spending money on appraisals, home inspections, or any other expenses related to the home purchasing process until the mortgage loan officer informs you that all of your loan documentation has been submitted and approved. Certain documentation, such as the appraisal, will need to be completed before the loan will be funded. However, your loan officer should be able to submit and verify all income and credit related documentation before you order the appraisal or spend any money unnecessarily.
• If something doesn't seem right don't hesitate to ask. - Sometimes people wish not to bother their loan officer or real estate agent and hence try to avoid asking too many questions. Purchasing a home is a major decision, usually involving hundreds of thousands of dollars. It's better to bother those who you are paying to help you than to leave important questions unanswered and wind up paying big in the long run.