Loan officers do far more than what people think. They often act as teachers, financial counselors and even lawyers. If you need a crash course in closing before you learn more about a loan officer’s role, check out our Buyer’s In-Depth Closing Guide.
A loan officer has a lengthy and busy job description, but here are four things you need to know so you understand the vital role they will play in the escrow process.
Loan Officers Become the Buyer’s Representative
A loan officer is not the same as a lawyer, but it is their job to represent the buyer to the best of their ability and to make sure the best deal possible is on the table. Unlike a lawyer, a loan officer can bend rates to a certain extent to give the buyer better prices. Along with all of the fees, a loan officer will also help guide the buyer through understanding property taxes, escrow charges and title fees.
Loan officers present all avenues to the buyer with full explanations. This gives the buyer the opportunity to make the best possible decision, which is usually an educated decision because of the loan officer. In many ways, a loan officer is a real estate teacher.
Loan Officers Review the Buyer’s Credit to Them in Detail
Since credit scores can score you better deals on property and prevent deals from taking place, it is the job of the loan officer to audit the credit of the buyer. It will be one of the first things they do to ensure no one’s time is being wasted unnecessarily. After the credit scores are retrieved by the loan officer, they review the three different credit reports are with the buyer.
The most important part of this process is confirming that the data from the credit reports is accurate since credit scores have a major impact on purchasing a property. If the buyer sees something wrong, then the loan officer can advise the best course of action.
They Monitor Changing Rates and the Buyer’s Payments
Loan officers do not do see buyers as just a single transaction. They see new home owners as long-time clients, who they continue to help and officer assistance to by monitoring payments and looking for better loans with friendly interest rates, so if a fantastic opportunity to refinance presents itself, then the officer can let the buyer know. They also keep a close eye on any market fluctuations and how the fluctuations might impact the loans of the buyers.
Operate in Transparency Regarding Rates and Loan Costs
Loan costs vary when it comes to financing a mortgage. The buyer should feel more confident by knowing the loan officer is required by FDIC law to cover every single line of a mortgage contract and the associated costs, and they are then required to make sure the buyer understands the purpose of each fee. There are a lot of fees, and real estate law can be complicated. A lot of this may fall under the section about a loan officer being the buyer’s representative, but it is crystal clear according to the law about the importance of complete transparency concerning laws and the loan officer’s abilities.
You’ve got a taste of the role a loan officer plays in the buying process, but these four pieces of information barely scratch the service of a loan officer’s full job description. That’s why it’s so important to find a proper loan officer before committing time and money to a major purchase. Team up with a First Team agent and work with one of our trusted loan officers. 2 birds, 1 stone.
Anica is a professional content and copywriter who graduated from the University of San Francisco. She loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she’s used to putting things to a vote. Also, cartwheels are her specialty. You can connect with Anica here. Informational credit: Succeed at Eagle.
