Selecting And Working With A Loan Officer
This BLOG On Working With A Loan Officer Was Written By Gustan Cho
One of the most important decisions that you will need to make is selecting the right loan officer and lender because the mortgage process can be stressful and working with a loan officer that you get along with is not just a necessity but a must. The mortgage process can be confusing and most borrowers are not aware of the constant changing mortgage guidelines and the way the mortgage business works. Working with a loan officer who can explain and guide you from taking your mortgage loan application to closing with little to no stress is the most important factor in the overall mortgage process.
Communication With Loan Officer
Mortgage Borrowers should be able to contact their loan officer anytime. Borrower communication with borrowers is extremely important. The mortgage process can be quite confusing and complex at time with no end of new mortgage regulations. Every loan officer has their own way of dealing with their borrowers as I have my own system with dealing with my borrowers. Over 75% of my borrowers are borrowers who either got a last minute mortgage denial by another lender or because they are going through a major stressful mortgage process. Here are some of the most common complaints I get by borrowers who had enough with their first loan officer and lender and wants to transfer their loan process to me:
- Loan Officer will not return phone calls and/or emails promptly
- Loan Officer will not communicate with borrower and will have a loan officer assistant or loan processor to deal with borrower
- Loan Officer will only text or email and not communicate over the phone
- Loan Officer is not available after business hours and cannot communicate with loan officer outside business hours
- Loan Officer keeps on asking for more conditions after conditions after the initial conditional loan approval
- Loan Process keeps on getting dragged on and loan closing keeps on getting delayed due to mortgage loan process
The above can bring on stress on any borrower especially since most borrowers are not familiar with the complexities of the mortgage process and that is why choosing a loan officer that you can work with is extremely important.
Consulting With Loan Officers Before Hiring Them
Not all lenders have the same mortgage lending requirements. Just because you meet the minimum lending guidelines for a FHA Loans, VA Loan, USDA Loan, Conventional Loan does not mean that the lender you consult with can do your loan. Most mortgage lenders have something called Mortgage Lender Overlays that may affect you.
Here is examples of overlays:
- FHA requires a 580 Credit Score to qualify for a FHA Loan but the lender may require a 620 Credit Score. This lender has a lender overlay on credit scores where FHA allows 580 Credit score to qualify for a 3.5% down payment home purchase FHA Loan but the lender will not accept this borrower because they have their own lending requirements on credit scores of 620 FICO
- FHA do not require for borrowers to pay off outstanding collection accounts and charge off accounts to qualify for FHA Loans. Many lenders will require for borrowers to pay off outstanding unpaid collection and charge off accounts for them to qualify for a FHA Loan
Unfortunately, there are loan officers who are not familiar with their company’s lender overlays and just because they get an approve/eligible per Automated Underwriting System they think that the borrower is qualified but that is not the case. This is one of the main reasons for a last minute mortgage denial due to not properly qualifying borrowers.
Question Loan Officer During The Initial Consultation
Again, working with a loan officer and a loan officer that will work with you is one of the most important factors of your mortgage process. Here are some questions that you should ask your loan officer during the pre-qualification stage of your mortgage loan process:
- Does your company have any lender overlays? And if so, would it affect my credit and income profile?
- How do you do your business?
- What days are you off?
- Do you work weekends?
- Are you available after business hours?
- Who do I contact when I have questions?
Many loan officers do have families and do not give out cell or home phone numbers and do not work evenings and weekends. Some loan officers will talk to the borrowers initially and pass the borrower to a loan officer assistant or several loan officer assistants. Working with a loan officer who meets your needs is important so it is best to iron this out during the initial consultation. Some borrowers get extremely stressed where if they cannot get a hold of their loan officer during the weekend, it will ruin their whole weekend and this can ruin the relationship between loan officer and borrower.
Working With The Gustan Cho Team
I have been a real estate for many years and did countless of closings myself and fully understand being on the other side. The side of the borrower.
Here is how operate my business and work with my borrowers:
- I preach to my loan originators and support staff that we have a great responsibility to all of our borrowers.
- Our borrowers are trusting us with all of their financials and are relying on us to make sure that they close on their home loan on time.
- It is not just our borrowers who count on us.
- Home sellers, real estate agents from both buyers and sellers side, attorneys from both buyers and sellers side, title company.
- Open communication is key and a borrower has the right to have their loan officers accessible 7 days a week.
- I am available 7 days a week, evenings, weekends, and holidays for all of my borrowers as well as for all of my loan officers who may have any questions.
- Many times I may be on the phone due to my hectic schedule, however, whenever a borrower calls me and I see their number on my calling ID, the next outbound phone call after I hang up with the person I have been on the phone with will the borrower who has called me.
- I enjoy it when a borrower calls me often and encourage my borrowers to contact me anytime or text me.
- I represent borrowers throughout the United States from all time zones so I start early and my day is not done until past midnight CDT.
- The answer to the above question on how frequently should you communicate with your lender, it should be often.
- Your loan officer’s job is to take your calls, emails, and texts and answer any and all questions you may have.
- If you are not getting that type of service, you deserve better and there are plenty of loan officers that will give you the service that you deserve.
- You are depending and counting on your loan officer and your loan officer has the most private and confidential information which includes financial and personal information as well as countless of letters of explanations.
- If a loan officer is too busy to return your phone calls in a timely fashion, he or she needs to rethink in taking on more borrowers.
- We have no lender overlays on FHA, VA, USDA, and Conventional Loans.
- There is no reason why a borrower cannot close on their home loan in 30 days or less.
Working with a loan officer is one of the most important factor during the mortgage process. If you are getting the runaround and need a loan officer who is available 7 days a week, evenings, weekends, holidays, and has no lender overlays, please contact The Gustan Cho Team at 262-878-1965 or call or text Gustan Cho at 262-716-8151 for faster response. You can also email us at firstname.lastname@example.org.