Is a FHA Loan Officer like a Doctor?

How does a loan officer compare to the life of a doctor that performs surgery? One thing for sure is that there is no comparison when it comes to the years of schooling that one has to go through to become a doctor. Matter of fact, you don't even need to have an education to become a loan officer. This might sound scary to many because buying a home is one of the biggest investments that one will make in his or her lifetime.

Is education needed to get by in life? Is education and college important? Can you be successful without a college education?  Yes and no. Here are just a few that never had a college education.Thomas Edison, Benjamin Franklin,Henry Ford, Walt Disney, Woody Allen, and Edgar Allan Poe. There are some big names here. What does this have to do with loan officers and doctors in regards to education? In becoming a doctor, you need years of schooling to learn procedures, techniques, and medical terms. As a loan officer, you need to know the basics of understanding how a mortgage works, the fundamentals, but most of the knowledge learned is from years of experience. You can teach guidelines, but you just can't really teach loan scenarios, especially when it comes to FHA mortgages. Even though there are guidelines set in stone, such as credit requirements and income ratios, FHA loans can still be approved above such requirements manually by an underwriter. There are risk factors and compensating factors that are looked upon when reviewing a FHA mortgage. This is where a very good loan officer comes into the equation. 

 

 

So how does all of this fit in when comparing a surgical doctor to a loan officer when it comes to approving you for a FHA mortgage? Keep one thing in mind. All clients are different meaning that not one loan is identical with another. A loan officer will ask a client for a list of documents. 

• Pay stubs
• W-2's
• Bank statements / 401 - k statements
  
• some times credit explanation letters or a job letter
• If ever divorced and there is child support included, they will need a copy of the divorce decree.
• If the client filed a bankruptcy in the last 7 years, they typically will need a copy of this also.

Where the so-called surgery begins for a loan officer is when this person has to review these documents. Just like there are good surgeons and bad surgeons, the same goes when it comes to loan officers. A good loan officer is going to review the pay stubs for deductions and or garnishments. They will also need to make sure that the W-2's fall inline and be consistent with the clients current earnings from previous years. Meaning if there is a big difference from one year to another, the loan officer needs to get an explanation because the underwriter will usually bring this up. And one other thing that needs to be reviewed are the bank statements. They need to look for large deposits that don't coincide with the clients normal pay history. They also have to look for checks that didn't clear, because this could have a negative affect on the loan decision. There are also other factors that can come into play when trying to make a decision on whether a client should be able to obtain a mortgage or not.

 

 

Summary : There are some very skilled surgeons in the world just as there are very professional, knowledgeable, and good loan officers. Would you want a doctor to prescribe the wrong medicine? There are loan officers that will advise their clients on the wrong type of mortgages. Why is this? Some loan programs actually pay a loan officer more money. Here is a great quote by Brian Brady. "The option ARM is OxyContin; very powerful and effective when used as directed. The problem is that it was dispensed like aspirin; often, liberally, and OTC by those untrained in its effects." Even though Option Arms are not FHA related, the point being made by Brian is that some loans can be very dangerous if not explained correctly. And this type of loan is not for everyone, just as plastic surgery is not for everyone.

Overall, a good loan officer is not going to over promise and under deliver. They will know what questions to ask and take the time to ask them upfront. Just as a surgeon prepares for surgery. You want a reliable loan officer that will walk you through the process, be available by phone and or e-mail from start to finish, and to take the time to explain things if you don't understand something. My advice? When shopping for a mortgage, don't be fooled by the best rate or the lowest fees. Make sure that your loan officer spends more than 5 to 10 minutes with you in regards to the questions that they ask. Would you go to the cheapest surgeon?  Or do you want someone that is good. A good surgeon cares about their patient before, during, and after. So does a good loan officer, which is one reason why I love what I do. Helping people....

 

 

 

______________________________________________________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert   You can also go to this group : The FHA Mortgage Group

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

 

Copyright  © 2007   by Jeff Belonger