A loan officer is a representative of a bank that works in a loan. Processing office of a bank, credit union, or financial institution. Who has an extensive idea of the various types of loans and the possible requirements. Loan officers are oftentimes called Mortgage loan officers because they always. Attend to Mortgage loans as it seems complex and a costly type of loan. Borrowers come across. Loan officers do assist in making provision of. Both secured and unsecured loans.
As loan officers, you are supposed to be familiar and have knowledge of all the available lending products, the terms of the credit line of a loan.
What you should know
- Firstly, do you know that a loan officer should assist consumers and business owners in choosing a loan product and in the application?
- Secondly, do you know that the consumer is the direct contact you can reach on behalf of a financial institution through the loan closing?
- Do you know that while requesting mortgages it requests a whole lot of paperwork/documents? Do you know how stressful that can be? But the loan officer can guide you simultaneously.
- Also, do you know the loan officer is responsible for collecting the appropriate closing documents for a mortgage and other loans?
- Do you know that some officers are compensated through commissions which are a prepaid charge and a negotiable one? Thus, these commission fees are higher in mortgage loans.
How a Loan Officer Works
However, the loan officer serves borrowers as a middle-man while they apply for loans from financial institutions. It is true that this transaction can be handled over the internet but most consumers still prefer a face-to-face business. This is because they need to be detailed on the product they are applying. You see the reason why a loan officer should have enough knowledge of the loan products. When this gets complex for the consumer, then he can be attended to for clarity and the financial institution achieves a face-to-face offer with their potential borrowers via the middle man (Loan officer).
Remember that the borrower needs advice before he or she applies for a particular loan product or the particular product they are eligible for.
How to process your application
By the time a borrower and the loan officer agree, the application is then processed. The officer should pass the application to the institution’s underwriter or higher loan processing officers who assess the creditworthiness of the potential borrower.
When it is then approved, the loan officer is to prepare the appropriate documentation and the loan closing documents.
Some loans actually required a lot of work and documentation such as secured loans. Secured loans generally require more documentation order than unsecured loans e.g. mortgage loans. It does not end there! Before closing a mortgage loan (Reverse mortgage or mortgage refinancing), the borrower is given a HUD-1 settlement statement. This also results that there is a standby officer attending to consumers so that they are assisted in presenting the right documentation. There are so many regulations protecting secured loans that every consumer and business potential borrowers must meet.