Mortgage Loan Officer Secrets to an Easy Loan Approval and Closing

People spend a lot of time at loan officer school to become loan officers and it can in fact be a very rewarding time. Helping people buy their new homes can be fantastic and it can certainly enable you to feel good about yourself too. However, there are many secrets which buyers don’t know when it comes to buying a home of their own. A lot of buyers forget that approval and closing of a home takes time and that it’s not always plain sailing. The following are a few secrets to getting approval and making the closing easier for all.

Credit Is Taken Into Account So Clean It Up

Let’s be honest, lenders offering you a mortgage, whether small or large, are going to be very wary if you have defaulted on past loans and bills. It doesn’t look very good or responsible for someone to ask for a mortgage when they have constantly been late or defaulted on bills and loans in the past. The better your credit score is, the better the chances you have of being approved for a mortgage loan and to make the closing of a home that much simpler as well. Remember, during mortgage loan officer training, loan officers are taught that credit is the number one thing that’s looked at for any lender.

Using the Earnings to Mortgage Ratios

Loan officers will also take a very close look at how much money you make per month. They will look at all sources of income from your salary and any additional bonuses on top as well as investments, child support payments, pensions and everything else just to see if you’re eligible for a mortgage. They use the ratio of what you earn to what it’s going to take to pay the mortgage off and see if you will be approved for the loan. At loan officer school, students learn that you can’t take someone on face value but rather what they’re asking to borrow and how much they earn each month. Read more.

Do You Have Any Assets To Fall Back On?

There are a lot of costs with buying a home such as closing costs of a home, the lawyer’s fees for sorting everything out as well as the deposit to consider but what happens if there are unexpected costs? What about your ability to cover those costs? Loan officers look to see what assets you have, if any, should the unexpected happen. It can be something which makes approval goes that much quicker. Of course, if your assets are limited it doesn’t mean you’re rejected for a loan but rather the lender takes a very close look at you again to assess their risks. At mortgage loan officer training students have to read every situation differently and not judge everyone by how they have a lack of savings.

Approval Can Take Time

People who want to get a mortgage will say they’re definitely eligible for a mortgage loan and that they won’t have any trouble in getting one. However, that is not always the case. A lot of buyers aren’t pre-approved for a mortgage and have trouble with closing on a home too. It is a cause for concern which is why you have to approach lenders before you apply for a mortgage and see if (with them) you’re eligible for any mortgage. Loan officer school is tough and a lot of loan officers have to realize that it’s a tough job too. Check out this site: