How to Avoid Customer Complaints as a Loan Officer: Proven Tips That Work
The mortgage business is full of moving parts, pressure, and paperwork. When something goes wrong, the borrower finds it hard. That’s why knowing how to avoid customer complaints as a loan officer isn’t just important—it’s essential.
At Gustan Cho Associates, we specialize in working with borrowers that other lenders turn away. Many of our clients have had bad experiences elsewhere. That means we have to overdeliver and provide five-star service every time. In this post, we’ll walk you through everything you need to know about how to avoid customer complaints as a loan officer.
Why Mortgage Customer Complaints Are on the Rise in 2025
In 2025, the mortgage market continues to change. Borrowers face rising interest rates, stricter underwriting, and more complex guidelines. The more confusing the process becomes, the more likely customers feel lost, stressed, and frustrated.
You must be ahead of that frustration if you’re a loan officer. Learning how to avoid customer complaints as a loan officer starts by understanding why borrowers are upset:
- Delayed closings without clear updates
- Last-minute requests for new paperwork
- Miscommunication or no communication
- Surprises during underwriting
- False expectations from the beginning
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Set Expectations Early in the Pre-Approval Stage
The pre-approval stage is the foundation of a smooth mortgage process. If a borrower gets a shaky or incomplete pre-approval, things will fall apart later. Here’s how to avoid customer complaints as a loan officer from the very start:
- Review the 1003 application line by line
- Examine credit, income, assets, and liabilities carefully
- Confirm employment history with VOE (especially for bonus, part-time, or overtime income)
- Be honest, if there are red flags
- If disputes exist on credit reports, explain what happens when they are removed
Setting clear and realistic expectations upfront means fewer surprises later—and fewer complaints.
Stay Available After Hours, Even on Weekends
Loan officers don’t work bankers’ hours. If you want to succeed in this business, you need to be available when your borrowers need you.
One of the biggest complaints we hear from clients who come from other lenders is, “My loan officer never picked up the phone after 5 p.m.” That’s not how we work at Gustan Cho Associates.
Want to know how to avoid customer complaints as a loan officer? Be available. Text, call, or email back promptly. If you’re unavailable due to illness or vacation, set up a voicemail or auto-reply and have a backup contact ready.
Communicate Every Step of the Way
You cannot overcommunicate in the mortgage world. Borrowers feel better knowing what’s happening, even if the news isn’t good.
At Gustan Cho Associates, we prioritize calling, texting, or emailing updates multiple times per week. Waiting days to update a borrower is a recipe for panic and complaints.
Here’s what borrowers want to know:
- Did underwriting get my documents?
- Has the appraisal come in?
- Are there new conditions?
- When will we get the clear to close?
A short update like “Still waiting, no changes yet” builds trust. That’s how to avoid customer complaints as a loan officer.
Build a Personal Connection with Every Borrower
This isn’t just a financial transaction. It’s emotional. It’s someone’s future. Many of our clients are first-time buyers or have had a tough financial past. They’re nervous.
Take time to build a professional but personal bond. Ask questions. Remember birthdays. Be human. Many of our past borrowers have become lifelong friends because of the care we have given them.
When you treat people like family, they don’t complain—they refer you.
Avoid Last-Minute Surprises in Underwriting
If you want to know how to avoid customer complaints as a loan officer, this part is critical:
Do your homework before sending the file for processing.
- Are there undisclosed debts? Check credit carefully.
- Is the condo FHA-approved or warrantable for conventional loans?
- Is gift money documented properly?
- Are there recent large deposits?
- Did the borrower just change jobs?
Catching these things early prevents underwriting from slamming on the brakes.
Train Your Team and Use a Proven System
At Gustan Cho Associates, we ensure that all loan officers are trained using a clear, step-by-step system that guarantees consistency and excellence in service. Each borrower experiences the same five-star treatment as we meticulously follow a defined process. Every loan file goes through a comprehensive checklist, each being reviewed twice to ensure accuracy and completeness.
Additionally, we prioritize communication by providing multiple updates to every borrower every week, keeping them informed throughout the entire process.
If your team isn’t trained to do things the same way, borrower experiences will vary—and so will complaints.
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Always Tell the Truth—Even If It’s Not What They Want to Hear
Many new loan officers get scared and overpromise. Then they get complaints when things fall apart.
You earn trust by being honest, not by being agreeable.
If a borrower is pushing the limits on DTI or credit score, tell them the risks. If their loan is borderline, tell them upfront. Losing a deal early is better than disappointing a borrower at the closing table.
Update Borrowers Several Times a Week (Minimum!)
Silence breeds fear. One of the easiest ways how to avoid customer complaints as a loan officer is to set a schedule for updates:
- Monday: Status check and reminders
- Wednesday: Underwriting or document update
- Friday: Recap and weekend check-in
Even if you have no news, send a message. “No changes yet, but we’re still on track.”
Don’t Blame the Process—Guide Them Through It
It’s easy to say, “That’s just underwriting,” or “It’s out of my hands.” But that feels like a cop-out to a borrower.
Instead, be a guide. Help them understand why conditions are added. Help them respond quickly. Be their advocate. Be in their corner.
Borrowers don’t need excuses. They need a coach.
Plan for Emergencies and Have a Backup Plan
No one plans to get sick or be unavailable. But you can plan what happens if you are.
If you’re going to be offline for a few days, assign another loan officer to cover your pipeline, update your voicemail, and let your clients know. One week of silence can undo months of trust.
What to Do If a Complaint Happens Anyway
Even the best loan officers get a complaint now and then. Here’s how to handle it:
- Respond quickly. The worst thing you can do is ignore it.
- Listen fully. Let the borrower vent.
- Take responsibility. Even if it’s not your fault, own your part.
- Offer a solution. Refund a fee. Rush a request. Make it right.
- Follow up after resolution. A sincere follow-up builds back trust.
Final Thoughts: How to Avoid Customer Complaints as a Loan Officer
Being a loan officer isn’t easy, but it is rewarding. When you take your role seriously, act like a true advisor, and stay in touch from day one to closing, borrower complaints become rare.
Let your borrowers feel seen, heard, and respected. The result? Happier clients, more referrals, and a strong reputation for excellence. That’s how to avoid customer complaints as a loan officer in 2025 and beyond.
Need help closing loans that other lenders can’t? At Gustan Cho Associates, we don’t have any overlays on government and conventional loans, so we can help you get loans that other lenders turn down. Reach out to us at www.gustancho.com to get started today!
Borrowers who need a five-star national mortgage company licensed in 50 states with no overlays and who are customer service experts, please contact us at 800-900-8569, text us for a faster response, or email us at alex@gustancho.com.
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Frequently Asked Questions About How to Avoid Customer Complaints as a Loan Officer:
Q: Why do so Many People Complain About Their Loan Officer?
A: Most complaints come from poor communication, last-minute surprises, or feeling ignored. Suppose loan officers want to know how to avoid customer complaints as a loan officer. In that case, they need to stay in touch, set expectations early, and be honest from the start.
Q: What’s the Easiest Way for a Loan Officer to Avoid Complaints?
A: As a loan officer, the easiest way to avoid customer complaints is to return phone calls, answer questions, and keep borrowers updated, even if nothing has changed.
Q: Can Slow Responses from a Loan Officer Cause Complaints?
A: Yes! One of the biggest reasons borrowers complain is that their loan officer doesn’t respond fast enough. Avoiding customer complaints as a loan officer means being available, even on nights and weekends.
Q: What Should Loan Officers do When They’re Not Available?
A: If you’re sick or out of town, always leave a voicemail or email saying who to contact. How to avoid customer complaints as a loan officer includes planning for emergencies and giving borrowers peace of mind.
Q: What do Borrowers Expect During the Loan Process?
A: They expect honesty, clear updates, and no surprises. How to avoid customer complaints as a loan officer means guiding them through every step and never promising things you can’t deliver.
6. Why is Setting Expectations so Important for Loan Officers?
A: Because borrowers panic when something unexpected happens. As a loan officer, avoiding customer complaints starts by setting the right expectations during pre-approval so they know what’s coming.
Q: How Often Should a Loan Officer Update Their Clients?
A: At least two to three times a week. Even a quick “we’re still waiting” update helps. As a loan officer, checking in regularly so clients aren’t left in the dark is one way to avoid customer complaints.
Q: Can Being Honest with Bad News Prevent Complaints?
A: Yes. Borrowers respect honesty. As a loan officer, you must avoid customer complaints by telling the truth—even if it’s not what they want to hear—because trust matters more than good news.
Q: Why do Some Borrowers Say Their Mortgage Process was Stressful?
A: Because they didn’t know what was happening. Avoiding customer complaints as a loan officer means turning confusion into confidence by clearly explaining the process.
10. What Makes Gustan Cho Associates Different When it Comes to Service?
A: We teach every loan officer how to avoid customer complaints as a loan officer by focusing on communication, honesty, and going above and beyond for every borrower, no matter their credit or situation.
This blog about “Avoid Customer Complaints as a Loan Officer and Win Trust” was updated on August 4th, 2025.
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