5 Questions You Should Ask Your Loan Officer

Dallas Loan Officer - The Tuttle Group

Dallas Loan Officer - The Tuttle GroupAnyone in the market for a new home may need to work with a loan officer. Loan officers can assist when underwriting and securing a mortgage. Here are five questions to ask to ensure you’re working with a loan officer you trust.

Ask About How Long They Have Been in the Business

Asking a loan officer about their professional background can help a homebuyer make sure they are working with the right person for them. So, we recommend you ask how long a loan officer has worked as a licensed broker. Homebuyers can even ask how many loans the broker underwrote in the previous year. Homebuyers should remember that mortgage professionals often switch companies, so these questions should get at the length of time in the industry overall.

Ask About Fees

We suggest anyone working with a loan officer for underwriting and securing a mortgage to ask the loan officer about their fees. Keep in mind that homebuyers don’t directly pay the loan originator’s fee. That’s because that fee is part of the mortgage price. Still, asking about a loan officer’s fee is important due to variation. Brokers who work with more than one wholesaler may have different fees with those different wholesalers.

We always ask if a loan officer will waive any fees discussed or roll those fees into a mortgage. When discussing fees with a loan officer, homebuyers should also ask about the fees they will need to pay at closing. These fees can include:

  • Appraisal.
  • Commission.
  • Credit report and application fees.
  • Loan origination.
  • Points.

Ask About Specific Expertise

A loan officer who has contacts and experience in a specific market can help homebuyers looking for specific loans, for example, Veteran Affairs or Federal Housing Administration loans. Likewise, we suggest homeowners looking for loans that are larger than conventional loans ask if their broker has wholesalers in that particular area.

The same goes for self-employed borrowers who may find verifying income tougher than usual. A loan officer who can give a homebuyer insight into the process for borrowers who are self-employed can offer great help when it comes time to close the deal. All in all, if homebuyers have specific or unusual needs, we suggest they discuss these questions with their loan officer.

Ask About Communication

The right questions go beyond the logistics of the loan itself. Homebuyers should also ask a loan officer about their communication preferences with clients. Asking whether a loan officer likes to use phone calls, text, emails, or in-person discussions can set the tone for a productive relationship. Likewise, we suggest asking how quickly a loan officer tends to reply to messages to set reasonable expectations between the loan officer and client.

Ask About Turnaround Times

Finally, homebuyers should understand their loan officer’s turnaround times going in. We counsel homebuyers to ask about turnaround times for everything from preapproval to appraisal to closing. Again, knowing this ahead of time sets expectations and ensures a successful relationship and process.

Finding the right home loan is an essential component of buying a home. By asking a loan officer these questions, homebuyers are ready to discover the loan they need to close the deal on their dream home.

Stay In The Know

Stay up to date on what you need to know about market changes and how that impacts a home mortgage.