In short, a mortgage loan officer is someone who helps borrowers throughout the mortgage loan application process. Read more below about their specific tasks and how working with one can help you reach your loan goals.
What Is a Loan Officer?
A loan officer is an individual who works for a bank or other financial institution. Most often, they are referred to as mortgage loan officers as mortgages are the most common product they deal with. However, loan officers can help applicants with a variety of secured and unsecured loans.
Loan officers help ease the loan process for borrowers and, often, increase the chances of approval. When applicants go straight through an online system to apply for a loan, they are subject to specific algorithms used to determine creditworthiness. These algorithms determine whether the application is approved for a loan.
Working with a loan officer is different as you are working one-on-one with a human being. Loan officers can take a deeper look into your situation without the bias that algorithms are built with.
As such, they can take factors into account that automated loan applications pay no attention to at all. With all factors in hand, they can make a more personalized recommendation to the approval department.
What Does a Loan Officer Do?
A loan officer completes a variety of loan-related tasks. The following are some of the most common ones:
- Meet with applicants to answer questions and guide them through the process.
- Provide information for different loan types and help customers determine which loan product is the best fit.
- Gather the necessary information for the application, including credit rating and financial documents.
- Determine the creditworthiness of the applicants.
- Ensure loan agreements comply with any regulations.
- Approve or reject loan applications.
- Keep up with updated reverse mortgage limits.
- Assist with reverse mortgage closing documents.
If the application is rejected, loan officers typically explain the contributing factors to the applicant and any next steps for future approval. For example, if an item on their credit report prevents approval, they’ll share the information with the applicant. The applicant can then address that item and reapply for the loan.
Do You Need a Mortgage Loan Officer to Get a Reverse Mortgage?
A mortgage loan officer is not necessary for a reverse mortgage, but working with one can help. Applying for any type of mortgage loan can be challenging and overwhelming. And the paperwork and terms can be confusing.
Working with a GoodLife reverse mortgage specialist can make the process go much more smoothly. They can guide you through the entire process, from evaluating your options to closing the loan. They’ll help ensure you make the best loan decision, explain all the paperwork, and answer any questions you might have. If a reverse mortgage sounds like the right move to you, contact GoodLife today.