01.28.2022

How Does a Loan Officer Help the Homebuying Process

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If you’re looking to obtain a mortgage, you’ve probably heard of loan officers. A licensed loan officer is needed to get a mortgage; but what does a loan officer do? Why is working with a loan officer necessary, and what is their role in the loan process?

A loan officer can help find the right loan type for you. A loan officer is a key player in the process of finding a mortgage and knowing how to choose a loan officer and what qualities to look for are essential in ensuring you get the best mortgage. A loan officer works for a credit union, a bank, or an independent lender. 

Loan officers are your direct contact when applying for a loan. They will research and review your financial history and assess whether you qualify for a mortgage. You won’t have to worry about regularly contacting all the people involved in the mortgage loan process, such as the underwriter, title company and others, because your loan officer will be the point of contact for all the involved parties. This will alleviate some of the stress of trying to keep track of all the various parties and their duties.

Meeting with a loan officer is your opportunity to prove your creditworthiness. You can explain anything that may have a negative impact on your application such as:

  • Any derogatory credit (missed payments, collections, bankruptcies)
  • Employment gaps or changes
  • Asset requirements

A loan officer will screen you to determine if you qualify. They’ll factor in your annual income, credit score, and debt-to-income ratio, but the numbers aren’t the only important factors in your ability to qualify for a mortgage. If you can make a connection with a loan officer and explain the circumstances of your situation to a human being, you may have a better chance of successfully obtaining a loan.

The mortgage application process can feel overwhelming, especially for the first-time homebuyer. When you work with the right loan officer, the process can be simple. When it comes to applying for a mortgage, the process can be broken down into six phases:

  1. Pre-qualified
  2. Shopping for a home
  3. Formal application
  4. Processing
  5. Underwriting
  6. Closing

What is your loan officer’s role during these phases? If your loan officer pre-qualifies you, they will help prepare your application. During the processing phase, your loan officer will contact you with any questions the processors may have about your application. The processor will then pass the application on to the underwriter, who will assess your application. If the underwriter approves your loan, your loan officer will then set the expectations on final terms and closing.

The amount of work this entails depends on what type of loan you’re applying for. Mortgage loans are known for needing a large amount of paperwork because of the mortgage regulations at the federal and state levels.

At Michigan First Mortgage, we have over 50 loan officers who work with our members to find the best lending solutions. We service a loan from beginning to end, saving our members time, and making the entire process more convenient with our ease-of-use technology tools. We enable our borrowers to purchase their dream homes, whether it’s their first home, a vacation home or an investment property or assist with restructuring their current mortgage to benefit specific needs such as lowering the rate or term or using equity available to access cash. Find the perfect loan officer with Michigan First Mortgage by going to www.michiganfirstcreditunion.com/mortgage.

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