Buying a house is an extremely involved process; it’s easy to understand that fact in theory, but it doesn’t really hit home (excuse the pun) until you’re applying for a loan to buy your first house.
It most likely represents the most important financial decision you will ever make–one that has a multitude of long-term effects on your future. If you’re applying for your first mortgage, you’ll be dealing with a loan officer. You might be wondering, “What, exactly, does a loan officer do?
It’s not until you’re wading through the paperwork and doing your best to understand the complex “legalese” that you can appreciate what a loan officer really does. Today, we’ll answer that question and examine how loan officers can help you become a proud owner of a home.
What Loan Officers Do For First-Time Homebuyers
Loan officers play a critical role in the home-buying process. Let’s take a look at just a few of a loan officer’s many responsibilities…
1. Possessing All of the Required “Know-How”
To even qualify to work as a loan officer, one must be an expert; they are required to be licensed by both federal and state authorities. Hence, all officers must be experts regarding the complex ins and outs, as well as the stringent regulations entailed by the lending process.
A loan officer also acts as a crucial point-of-contact between the lender and the home-buyer. They provide invaluable research, including any pertinent information about the borrower’s financial records.
2. Identifying the Right Mortgage Product for You
Mortgages have never been a “one size fits all” sort of affair–as such, first-time home buyers like you can benefit from the expertise provided by a skilled loan officer. Not only can they help determine the right mortgage product for you, they can secure your loan at an advantageous interest rate for you.
3. Acting as a Point of Contact
Why, you might be asking, shouldn’t a home buyer deal directly with the person or organization who will actually be funding the loan? Consider the following:
You, as a first-time home buyer, need to secure the best possible interest rate and loan amount from whichever lender, and your lender needs to know everything they can about your financial history.
4. Completing All Necessary Paperwork
Sometimes it seems like it would take a professional bodybuilder to lift all of the paperwork involved in the purchase of a home. If that wasn’t difficult enough, even a small mistake can derail the entire process.
Suffice it to say that the paperwork involved can be a little labor intensive. Even a well-informed home-buyer like you (we’re assuming, given that you’re reading helpful articles like this) is going to have some questions.
5. Helping Clients With Credit Issues
The right loan officers can make all the difference for clients with past or ongoing credit problems. For one thing, they can let you know the likelihood of being approved (potentially saving you a lot of time, money, and hassle). The right loan officer can also advise you of the best way to improve your chances of approval.
6. Providing Potential Alternatives
Even if you jump through all of the hoops, dot all of the I’s and cross all of the X’s, there’s always the possibility that your loan might not be approved; a variety of factors can result in denial, but luckily a loan officer can walk you through your options.
In the event that you’re not approved for a mortgage loan, a loan officer can recommend the best course of action to remedy this situation and improve your odds of securing a loan the next time you apply for a mortgage.
What Can a Correspondent Lender Do For You?
If you’re buying your first home, chances are good that you’ll apply for a mortgage via correspondent lenders. Ok, but what does that mean?
A correspondent lender is one who has their own staff to fund loans and underwrite mortgages with their own money. Smaller correspondent lenders might only be in contact with a small group of investors.
If you’re applying for your first mortgage–let’s say $275,000. Once your loan is approved, the correspondent will access their line of credit to fund the loan, and later will wire the funds via a title company or an escrow agent (who, finally, will close the loan). The lender then sells your mortgage to another investor through a secondary market.
Simply put, if you find the right Washington DC correspondent lender, your options will only be limited by the lenders with whom they are in contact.
Finding a Great Lender in Washington D.C.
Before we talk about finding the right Washington DC mortgage lender for you, let’s quickly review a few points that you need to take away:
Your loan officer is the “go-between”–your representative in the home-buying process. By building a connection with a Washington DC mortgage lender, you can ensure that you get the right kind of loan for you and your family.
It’s your loan officer’s job to crunch all of the numbers, to advise you along the way, and ultimately, to streamline the whole process of applying for your first mortgage.
When you’re ready to take the exciting jump into home-ownership, make sure that you find the Washington DC mortgage lender that is right for you. Take the time to interview potential candidates to narrow down your selection. Have each of them provide an estimate of the cost of their loans. Ask multiple loan officers to give you estimates on the same day–interests rates fluctuate frequently.
In the end, we think you’ll find that nobody beats the expertise and service that Gregg Busch offers. Feel free to call or visit the Busch website with any questions you might have; we’re confident that his services will help you find your way home!