What does a mortgage loan officer do

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Loan officers are a borrower’s guide in the home mortgage application. For example, if you have been interested in taking out an FHA construction loan, then your mortgage officer will tell you that you need to make a minimum downpayment of 3.5 percent and inform you of the necessary documents you need to prepare to start you on your way to your home mortgage.

Because of the COVID-19 pandemic, the usual minimum credit requirements for taking out loans, like VA loans, jumbo loans, one-time close construction loans, and the likes have changed. So it is the duty of your mortgage officer to tell you what the requirements will be as it changes depending on how the situation progresses.

A mortgage loan officer will also guide you as you process your mortgage application.  Requirements depend on each borrower’s situation and the kind of mortgage that they are applying but the usual documents needed would be your tax returns, pay stubs and W-2s or any financial document that will show how much your stable income is.  Loan officers will also tell you to prep your credit history and bank statements.  The reason for all these financial documents if for them to gauge your capacity to pay. If for some reason, your current credit score is low, or you are going through a challenging financial situation and your history will not allow you to get loan approval, the mortgage office can help you by suggesting what you can do and what other options may be out there for you.

Mortgage loan originators need to go through mortgage licensing classes and they need to be abreast of all the current trends in the market.  That is why it is important for you to deal with licensed and legitimate mortgage companies so that you are sure that you are dealing with professionals. If you have more questions about your mortgage eligibility, let us know how we can help you.