Choosing A Loan Officer With No Mortgage Lender Overlays

This article is about Choosing A Loan Officer With No Mortgage Lender Overlays
What Out For These 7 Red Flags When Choosing A Loan Officer 

Buying a home is pretty stressful:

  • That stress can be minimized or increased by the mortgage loan professional that you choose
  • While most Mortgage Loan Officers are very busy people who have to juggle a myriad of things and at the same time keep their clients happy, there is a certain etiquette that all professionals should follow
  • If you happen to find yourself working with a person that does not make you feel comfortable, it is your right to fire them

Tips In Choosing A Loan Officer

Below are some of the behaviors that when done regularly, can indicate if your Loan Officer is up to par.

  • Condescension: You feel the Mortgage Loan Officer thinks you’re an idiot
  • No return phone calls: You frequently wait more than 24 hours or longer for a return phone call, text or email
  • Rushes you off the phone: You can barely get a word in, and when you do, you can barely finish your sentences
  • Is strictly business all the time: You don’t know anything about your Mortgage Loan Officer other than his name and where he works
    1. Loan officer doesn’t know anything about you outside of what is on your mortgage application
  • Over promises and under delivers: When you notice a pattern of being promised certain outcomes during the transaction, just to hear on a regular basis: “I’m sorry but….”
  • Preoccupied when speaking to you
    • When you are speaking to your Mortgage Loan Officer and there are long pauses on the other end and you can tell that he did not listen to anything you said
  • No explaining
    • If your Mortgage Loan Officer hates questions and doesn’t like to explain when asked

Not All Lenders Have Same Mortgage Lending Requirements

Not all lenders have the same mortgage lending requirements.

There are two types of mortgage guidelines:

Agency Guidelines:

  • All lenders need to meet the minimum agency guidelines set by FHA, VA, USDA, Fannie Mae, Freddie Mac

Lender Overlays:

  • Lender overlays are mortgage lending guidelines that are above and beyond of agency guidelines
  • For example, HUD, the parent of FHA, requires a 580 credit score to qualify for 3.5% home purchase FHA Home Loan
  • Most banks require a 640 credit score although FHA only requires 580
  • This higher credit score requirement is called a lender overlay on credit scores by banks

Just because a borrower may not qualify with one lender that they cannot qualify with a different lender with no overlays. Make sure when choosing a loan officer that the loan officer represents a mortgage company that has little to no lender overlays.

About The Author

Lender overlays

Alex Carlucci is an associate contributing editor for Gustan Cho Associates Commercial And Residential Mortgage Information Center. Alex is also the National Sales Manager at GCA Mortgage Group. We have asked Alex Carlucci to be one of our expert writers and are blessed and honored that he agreed. Alex Carlucci is one of the most rounded and experienced individuals I have ever met. Alex is a mortgage loan officer and also has extensive experience in investing in real estate and is an expert in all areas of real estate and mortgage lending. Alex Carlucci is knowledgeable in all aspects of life in general and we are looking forward to her writings. Stay tuned.

Leave a comment