Advice On How To Become A Successful Mortgage Loan Officer
Starting A New Career As A Loan Officer And How To Become A Successful Mortgage Loan Officer
This mortgage blog article on How To Become A Successful Mortgage Loan Officer is geared towards those individuals thinking about starting a career as a loan officer and becoming the best of the best in the mortgage industry. A career as a mortgage loan originator can be extremely rewarding but it does take some time in developing a book of business and marketing your business. Unlike other professions, becoming a mortgage loan officer is like owning your own business. Most mortgage loan officers are compensated on commissions and if they do not originate and close mortgage loans, they do not get paid. Loan officers need to gain the confidence of their borrowers. Mortgage borrowers need to trust their mortgage loan originators because they need to provide all of their financial and personal information to them. Mortgage borrowers do not just submit their financial information to their mortgage loan officers but they also need to provide personal letter of explanations about their past issues such as periods of unemployment, divorce, bankruptcy, loss of business, collection accounts, sources of income, irregular deposits, reasons for foreclosures and/or short sale, alimony, child support, and other issues they may have had or are currently having. A loan officer will need tax returns, W-2s, paycheck stubs, bank statements, retirement accounts, investment accounts, child support paperwork, divorce decree, bankruptcy paperwork, and will need the borrowers credit report as well as review the borrower’s payment history. Mortgage loan officers will need to carefully review and analyze the borrower’s bank statements, withdrawals and deposits of their bank statements, and obtain verification of employment, verification of deposits, verification of mortgage, and verification of rent. Financial information is every person’s most private and confidential information but the mortgage loan officer needs access to every aspect of the borrower’s financial and personal information. Mortgage loan originators need to be trusted and respected by borrowers in order for them to gain their confidence and for the borrower to hire them to represent them to become their mortgage loan officer. The bottom line on how to become a successful mortgage loan officer is to command the confidence and respect of the mortgage loan borrower.
How To Become A Successful Mortgage Loan Officer: Treat Your Borrower The Way You Want To Be Treated
The key on how to become a successful mortgage loan officer is to treat your borrowers the way you want to be treated. Being a mortgage loan officer is unlike any other sales profession because you need access to all of your borrower’s financial and personal information. I manage a team of licensed mortgage loan originators and under my watch, all of my mortgage loan originators are required to be available 7 days a week for all of their borrowers. The trust mortgage borrowers give their loan officers deserves the respect back to the borrower. I am always available to my borrowers, It does not matter whether it is after work hours, evenings, weekends, or holidays. The mortgage process is a stressful process and a lot of lives are at stake. The home buyer is counting on the mortgage loan officer to be able to close on their home loan on time. Home buyers are making plans on moving, packing their belongings, making arrangements with movers, making arrangements with registering their children to their new school districts, ordering new utilities on their new homes and disconnecting utilities of their old home, terminating their lease of their rental with their landlord and the landlord may already have a new tenant to move in. On the home sellers side, the home seller may already have a new home under contract and is relying on the home buyer’s lender to make sure that their home close without any issues and close on time. Again, like with the home buyer, the home seller is packing their belongings, making arrangements with the utility companies, terminating the enrollment and transferring school records for their children to their new school districts, and making arrangements with the moving companies. A wrong move by the home buyers mortgage loan originator may pyramid the whole process into disaster and affect many people’s lives. Communication is key on how to become a successful mortgage loan officer. Make sure that every phone call and/or email by not just your borrower, but the home buyer’s realtor, home sellers realtor, home buyers attorney, or home sellers attorney do not go unanswered. A loan officer needs to brand their name. Most borrowers do not care about the mortgage company but only care about the individual mortgage loan officer. The individual mortgage loan officer is the person who they are relying and counting on so do not let them down. Many loan officers try to avoid phone calls from their borrowers when things do not go right. That is the worst thing to do is avoid when there are issues with the mortgage process. Borrowers understand the complexities with the mortgage application and approval process so if there are any hiccups or issues that arise during the mortgage process, that is the time for you to contact your borrower and let them know the situation you are facing and if you do not have any answers, tell them that you are looking into solutions to fix the problem on hand and you will update them shortly. Always give your borrowers updates, especially before a long weekend and be available on the weekends, evenings, and holidays to take your borrower’s phone calls. Remember that your borrower has trusted you and is counting on you so do not let them down. Be available to them at all times. Your borrowers will understand and respect you if you are totally upfront with them. All issues can be correctable. Examples of issues that can arise during the mortgage process is too much to list but all of the issues that I have run into during the mortgage process were all fixable. Some examples of issues that can arise is if the appraisal did not come in at value, borrower changed jobs during the mortgage process, borrower is short of cash to close, or the borrower’s homeowners insurance came out more than expected and the borrower no longer meets the minimum debt to income ratio requirements. All of the above issues can be solved:
- Appraisal not coming in at value: Normally on cases like this we can do an appraisal rebuttal but appraisal rebuttals are normally hard to overturn unless the home seller can provide strong comps. Cases where the appraisal does not come in at value, the sellers normally reduce the purchase price to the appraised value or the home buyer and home sellers can renegotiate the purchase price and they come to a compromise.
- Borrowers has changed jobs during mortgage process: There are times where a borrower changes jobs during mortgage process. On situations like these, the closing will get delayed until the mortgage borrower can provide 30 days of paycheck stubs prior closing and a verification of employment with the new employer can be done.
- Higher than expected debt to income ratios: When a mortgage loan officer deals with a higher debt to income ratio borrower, there may be issues where the borrower’s debt to income ratios go higher during the mortgage process such as when homeowners insurance comes in higher than expected. This issue can get resolved by lowering the mortgage rates by paying points or by paying down certain debts such as revolving accounts or adding a non -occupant co-borrower to the mortgage loan. Again, this may delay the closing of the mortgage loan.
How To Become A Successful Mortgage Loan Officer: Pre-Approval Stage
The reason why most mortgage loan denials happen on the 11th hour or there are delays on mortgage closings is because the mortgage loan originator was not diligent when issuing the pre-approval. Mortgage loan officers need to be extremely diligent when issuing a pre-approval letter. If the mortgage loan officer takes their time and is diligent in reviewing all income docs, thoroughly review the borrower’s credit reports, make sure that foreclosure, bankruptcies, and short sales dates have met the mandatory waiting period requirements, make sure that there are no credit disputes on collections and derogatory credit items, make sure that they have a verification of employment on borrowers who have part time income or irregular wages, and that the borrower not just meets the mandatory lending guidelines but also meets the lender’s overlays requirements, there is no reason why the mortgage loan should not close and close on time. The major reason of last minute loan denials or major delays on the mortgage process is because the pre-approval was not solid. Take the extra time and make sure that the pre-approval letter is solid before issuing it to your borrower. If the mortgage file is complex, check with an underwriter on the case scenario before issuing the pre-approval letter and make sure you save the email correspondence that you had with the underwriter on the file so you can refer back to it if the underwriter says something different during the mortgage process.
How To Become A Successful Mortgage Loan Officer: Contacts With Real Estate Professionals
Every time you represent a home buyer as a mortgage loan originator, you will meet not just the home buyer ( your mortgage loan borrower ) but you will have contact with the home buyer’s realtor as well as your home buyer’s real estate attorney. Many times, as a mortgage loan originator, you may have contact with the sellers real estate agent as well as the home seller’s attorneys. Although you cannot disclose your borrowers personal financial information, there is no law or ethics violations in introducing yourself as the home buyer’s mortgage loan officer and exchange contact information. By keeping yourself available to all parties involved, you are making contact with them and they will be appreciative and remember your name. These real estate professionals are great future referral sources for you and after your borrower has had their closing, send everyone a thank you card and follow up with an email thanking them for being so cooperative and to contact you if they have any questions on your area of expertise or have a question on a mortgage lending case scenario.
Are You Looking To Start A Career As A Mortgage Loan Officer?
Gustan Cho Associates is currently hiring mortgage loan officers nationwide. If you are a licensed mortgage loan officer and are looking for a new mortgage lender to work with that will provide marketing support and have no lender overlays, you have come to the right place. We provide hard working mortgage loan officers with borrowers who are qualified. No cold calling is necessary and you do not have to worry about marketing. We have a full marketing staff and more people who need our services than we have loan officers. Also, if you are a self motivated individual who is planning on starting a new career as a loan officer, please contact us and we will guide you in getting your NMLS mortgage loan originator license and getting you started.