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A Good Loan Officer is More Important than the Lender

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Working with a qualified mortgage loan officer can, in many ways, be more important than partnering with a good lender. While a lender works for a lending institution and is interested in making money off of providing loans, a mortgage loan officers works with multiple lenders to help you find the best deal. Furthermore, a lender will not always go out of his way to help you get a home or qualify for a mortgage if you have bad credit or special circumstances, while a qualified mortgage loan officer will.

What Does a Mortgage Loan Officer Do?

A mortgage loan officer may work for a private bank or may work independently and help to connect you with multiple lenders. Mortgage loan officers are usually experts on evaluating your credit and on finding intricate deals and savvy financing options to help you qualify for a mortgage.

Specialized loan offers may work with homeowners who have proven delinquent on other accounts. These officers understand the consequences of low credit scores and other risk factors, and they can salvage deals between borrowers and lenders that might otherwise fail. For example, a loan officer may be able to work out a collateral agreement in which you put up an asset to secure a loan or to act as collateral on the loan. If you fail to make your payments, the bank can then seize the asset, so the loan is less risky for them.

Benefits of Working with a Mortgage Loan Officer

Lenders may be less interested in the particulars of your situation and more interested in how they are going to come out on top. Since a loan officer usually works on commission, it is in his best interests to make sure you find a loan you can qualify for; private lenders do not have this incentive.

Furthermore, there are literally hundreds if not thousands of lending institutions available from private banks to credit unions to online lenders. If you are unschooled in the logistics and financing of loans, you can end up paying a higher interest rate than necessary, or being unable to find the right loan at all.

When you work with an informed mortgage loan officer, on the other hand, you can connect with more appropriate lenders, who can provide the most optimal rate possible given your credit history and risk factors. The money you may save in interest payments is, in many cases, far more tan the commission you will have to pay your mortgage loan officer.

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