What Does a Loan Officer Do: Explained in Detail

Transcript

Welcome to our channel. In today’s video, we’re going to dive into the role of loan officer and learn about their vital contributions in the world of lending. Let’s get started. Loan officer is a financial professional who guides individuals and businesses through the loan application process. They serve as a bridge between the borrowers and the lenders, ensuring a smooth and efficient experience.

The first step in the lending process and a loan officer’s role. is to meet with the borrowers and discuss their financial needs and goals. I’ve always talked about how looking at your bank statements can actually tell you as much as looking at your income statements, because your bank statements tell you what’s going in and what’s going out.

A loan officer can help you and give you an honest answer and review your financial documents, go over your income, your credit, and what fits with you, and what makes sure that if there is a payment increase, it’s going to fit your lifestyle. I’ve always told people, Hey, if you’re increasing your, your payout 10, 20, 30%, you’ve got, you’re not saving any money.

Where’s this money going to come from? You can’t just rub your hands together and be like, Hey, things are good. So that being said. The next step is to educate the borrower about the different loan types. You want to make sure that your interest rate, and your loan programs, and your down payments fit what you want.

You want the repayment terms, any associated fees with different, different program types. There’s different items that tie into these, and you need to nail that down. Once the borrower chooses the appropriate loan, then the loan officer does the application process. Collect and verify all the necessary documentation.

And we get the pay stubs, the bank statements, all the usual suspects, your ID, and we ensure compliance with lending regulations and we send that in to be approved. Once it’s all gathered, it’s sent in to be approved to an underwriter. An underwriter checks the veracity, look for inconsistencies, they look for other things.

Throughout the loan process, the loan officer maintains open communication. They provide status updates to all parties, and they guide the borrower through the closing process once you get this clear to close. Then you go over the terms and conditions again. You make sure that all of the things fit what they need to do, if anything changed, and they’re prepared for their signing.

We go over the closing disclosure in detail, every single line. So when you walk in your closing, you’re very well informed. I’ve actually gotten loans from employees of title companies because they said my borrowers were the most informed. As one of my borrowers said, talking to you is like drinking through a fire hose, but I love data, so keep the data coming.

So, in conclusion, loan officer plays a crucial role in enabling individuals and businesses to achieve their financial goals. They will provide personalized guidance, navigate complex processes, and ensure compliance with lending regulations. Thanks for watching our video on what loan officers do. If you found this informational, please hit the like button, smash the subscribe button, and we’ll get you more financial insights in the coming months.

Thank you. And we appreciate you looking at our channel from Texas home loans.