If you Lose a Loan at Least Learn the Lesson

Closing a Home Loan

Now a days there are tons of mortgage programs available from many lenders, and it’s hard to keep up with every program guidelines, requirements, restrictions, ..etc. As a loan officer you are not expected to be aware of every underwriting guideline there is for every program, but at least for the most popular mortgage programs available, as a loan officer you should have a pretty good idea about the general guidelines and qualification requirements.

The loan underwriter is responsible for analyzing your clients risk to determine if the terms of their loan are acceptable. The underwriter will investigate to make sure your client’s application and documentation are truthful and they will double-check you have described your finances accurately.

Mortgage underwriting standards have become more stringent in the last few years. This requires mortgage underwriters to look closely at the applicant’s employment and financial history before approving a loan. Depending on the lender, the mortgage underwriter may be part of an in-house underwriting team or they may be be part of a separate processing/underwriting company your lender uses to outsource the underwriting process. The underwriting process may vary slightly among lenders, who can delegate responsibilities to you as a loan officer, processors and underwriters differently.

Nevertheless you should never put all your trust in the underwriter, because no one knows the clients specific situation better than you, and no one cares more about closing the deal more than you, so it’s always better to be involved with the underwriter to a certain degree, where you don’t bother him/her or overwhelm your self, but at the same time you are in reach and aware of the program requirements and your clients ability to meet them.

As a loan officer, your primary goal is to determine the best mortgage loan program for your client. Understanding details like property type, loan amount, credit score etc., is the key to providing your clients great service. But to keep your business healthy, you need to make sure that you are educated enough in terms of program guidelines, so that you can first not promise your clients whats not possible and second be able to over come any loan programs before they happen.

Learning loan programs can also have a significant impact in your marketing efforts. You should research to learn about specific products and services that can help your clients. For example, you may not want to start a conversation with a first-time homebuyer the same way you would with someone who has already gone through the mortgage process. Make use of information that will have the most impact on your audience.

Loan Officers are always looking for the one lender that will help them close every loan. They seek out that one program that will instantly bring borrowers to their door. But that never works, because there is a reason why there are tons of loan programs out there, which is that every clients situation is different, but if you are educated enough on the most popular loan programs available then it will not be too hard for you to place the right client in the right program, which will ensure a smooth deal closing, happy client, happy realtor and more money in your pocket.

Steps to closing a home loan

As a loan officer you work really hard to generate a lead and then work it, and finally close the loan, so it’s crucial that you are on top of the loan transaction on every step of the way:

  • Meet with applicants to obtain information for loan applications and to answer questions about the process.
  • Analyze applicants' financial status, credit, and property evaluations to determine feasibility of granting loans.
  • Explain to customers the different types of loans and credit options that are available, as well as the terms of those services.
  • Obtain and compile copies of loan applicants' credit histories, corporate financial statements, and other financial information.
  • Review and update credit and loan files.
  • Review loan agreements to ensure that they are complete and accurate according to policy.
  • Compute payment schedules.
  • Stay abreast of new types of loans and other financial services and products in order to better meet customers' needs.
  • Submit applications to credit analysts for verification and recommendation.
  • Handle customer complaints and take appropriate action to resolve them.
  • Work with clients to identify their financial goals and to find ways of reaching those goals.
  • Confer with underwriters to aid in resolving mortgage application problems.

At the end of the day no matter what you do you will not be able to close every deal, but every loss comes with a again which is the experience that you should utilize to prevent future loans from falling and to increase your closing ratio.

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