The mortgage process can be confusing and it seems to be getting more complicated as we go along. There are so many people involved in a mortgage transaction and I think it might be beneficial to you, the consumer, to understand who all these people are and what functions they perform. This will start a series of posts on the different stages of the mortgage transaction, who does what and when.
Loan officer- This is usually the person that you have the most, if not all, contact with during the mortgage process. Your loan officer's first job is to interview you. The interview part of the process is where you and your loan officer determine what you are looking to accomplish with the loan you are applying for. Once you have established your goals, they will ask you a number of questions regarding your income and job history, your personal assets, your residence history and your credit history. Be prepared to supply your loan officer with proof of your income, your assets, your housing payment history and explanation letters if you have had any credit problems, gaps in employment or drops or increases in income. Your loan officer will review the information you have given and assess that against your goals. This is the qualification part of the mortgage process. Be prepared for this to take several hours or as much as several days. Your loan officer will present you with a proposal of what you qualify for and what costs and fees are to be expected.
Congratulations! You and your loan officer have found a mortgage product that will accomplish your goals! If you are purchasing a property your loan officer will provide you with an approval letter that will need to accompany any offer you may make on a property. This letter will tell your Realtor the price range of homes that you are qualified to buy and will assure the seller of the property that you wish to purchase that you can obtain the necessary financing. HAPPY HOUSE HUNTING!
Now you have found the perfect house or you are refinancing the perfect home you already own.
What happens now?
Your loan officer will deliver your file to the MORTGAGE PROCESSOR.
**See my next post about what a mortgage processor does for you**
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The INTERVIEW is perhaps the most critical part of the mortgage processor. It is incredibly important that consumers understand that they're Loan Officer actually works for THEM! Factual information and all out honesty along with thorough preparation for the initial meeting is a major key in guaranteeing a smooth transaction. Well done!