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: https://www.loanofficerlicense.net/3-tips-for-a-successful-mlo-license-renewal-in-2018/
Mortgage Leads For Today’s Loan Officers
The first thing you should do is always to discuss with home financing loan officer and find out simply how much of a home you can afford. If you’ve never gone through this before, it sounds intimidating. Don’t worry, it isn’t. Most of the process can be carried out over the phone in a short conversation where I go over your financial predicament and short and long-term goals. I take note of your wages, debts and occupation, your savings and what you’re trying to gain through getting a home. This first conversation helps me to discover not just how much of a loan you are able to qualify for, but what program works best for you and the situation. Sometimes, I see problems that can keep you against buying now, or which could mean the cost could be higher. When this happens, my goal would be to supply you with a map on what it is possible to do to solve these problems so that you are able to obtain a home in a very way that works for you. After initial pre-qualification, I should get documentation of the situation. This usually includes W2s, pay stubs and bank statement, possibly more determined by your position. I will then run your credit and place your loan through our automated underwriting system. At this point I have a full pre-approval, and realize that you’re well capable of buy a home. You are now absolve to search to get a new home.
If your mortgage is several years or much older than you currently are paying a better monthly interest than today’s prevailing interest rate. When you signed you existing mortgage the interest rate during those times determined what king of rate payable through the entire course of the loan. I can say you happen to be paying a greater interest with absolute confidence seeing as how interests have never been just these are today. Thanks to refinancing, you happen to be able to trade your existing mortgage for the brand new one and benefit from historic reduced rates. At least you are getting mortgage license to sum it up.
The Qualification from the lender
When using a loan officer, you should make certain they’re well qualified to serve in this capacity. In most cases, lending officers will have Bachelor’s degree in economics, finance and other associated fields. You must avoid dealing with those of them without valid college degrees. It’s important you follow through when you engage any of them. It is important that you get an MLO license first before doing business.
The best lenders are the types that you will be described. TV commercials and lenders you will find on the internet are NOT COOL! These are shady lenders that could sell your details to other sources, or “get” you with a teaser rate that’s only available for perfect borrowers with spotless credit, who make a lot more money than you. On the other hand, your brother’s friend’s uncle that does loans part-time from his home office doesn’t fit the perfect description of a good loan officer either! It all relies on who you know, or whom you could possibly get linked to. More details in this post: http://globaltesolcertificate.com/be-careful-what-you-sign-mortgage-industry/
Prospects should like you and find out you as someone who brings value to their careers, somebody that can help and guide them across the road with their success. The second is the process itself because ultimately this is what grows the company which is what I teach. It is the system that will make or break your company.