Loan officers are paid to perform many functions. The exact work that they perform will depend on the individual loan officer and what they are willing to do. Some are willing to ‘go the extra mile’ for their clients. Others are only willing to do the bare minimum to get the loan done and get paid. Obviously if you have the choice, you want to work with the former.
A good loan officer will sit with you to fully understand your financial situation and objectives. Based upon that, the right loan program for you can be identified. The loan officer should then tell you what information and documents you'll need for the loan and stay in touch with you throughout the entire process, right up to the closing.
Most good Loan Officers will try to present you with a few options for your new mortgage. He should be able to explain the pros and cons of each option and give his opinion on which program he thinks is best.
Although a loan officer is helping you obtain financing, he also has legal and contractual obligations to the lender and legal obligations under city, state and federal laws. Part of those obligations requires the loan officer to provide accurate information about your mortgage to you with no misrepresentation. Conversely, the loan officer is alos required to provide accurate information about you to the lender with no misrepresentation.
Loan Officers/mortgage brokers are paid for providing a tremendous service to you. The same as a doctor, a lawyer, a Realtor, a builder, a financial planner/consultant, etc. provide a service and charge money for it, so does a loan officer/mortgage broker/banker. There are some discount mortgage brokers/bankers/loan officers out there who may be among the lowest for fees charged, however most of the time you will
get what you pay for. On the other hand there are some mortgage brokers/loan officers who charge exuberantly high fees and do very little for you too. The key is to find a highly recommended and very knowledgeable and reputable loan officer that you know you can trust. Loan officers are paid to handle your transaction from start to finish and the really good loan officers will offer their knowledge and expertise for the life of your loan and help to answer questions and assist you long after your loan has closed. Loan officers provide a service that includes, but is not limited to, finding the right loan for you and your personal situation, preparing expert mortgage analysis's for you, educating you on credit, mortgages, and the home-buying refinancing process, handling all of the details of your home loan transaction, arranging your financing, acting on your behalf with numerous lenders to find you the best situation possible, understanding credit reports, lenders guidelines, and what rates are going to do, becoming an expert in his/her field to better assist you, taking continuing education classes to remain informed on updates, new laws and reforms in the industry, working earlier and later than traditional banks, being available to you at all times with a quick phone call or email (even during non-business hours) and many, many other things to help make sure you are taken care of properly. Please contact a loan officer to help you obtain great financing opportunities and the loan you deserve.
» DISCLAIMER: The information contained in this article on 'What are loan officers paid to do? ' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.