A loan officer is someone in a financial institution whose work is to assist borrowers in acquiring loans. In real estate, he or she has an extensive knowledge about mortgage loans.
A loan officer also has a complete and dynamic knowledge with regards to the requirements and conditions applicants should qualify for when applying for mortgage loans. Simply put, a loan officer acts as a liaison between a mortgage company and the homebuyer applicant.
Roles of a loan officer
In the general sense, a loan officer can assist loan applicants for education, car, commercial, and home loans. When an applicant applies a loan for a home, the assigned loan officer explains the legal conditions of the stipulated therein.
He or she also must know how to scrutinise an applicant’s capability to repay, and project the possibility of a financial mishap in the part of the loan applicant, which will become a cause for delinquency.
Furthermore, a competent loan officer must be fully knowledgeable of future loan opportunities that an applicant may be interested in.
Some loan officers are compensated through commissions, which are usually based on the loan origination, a lengthy process that a loan applicant undergoes when acquiring a mortgage loan or any types of loan. This usually covers disbursal of funds right up to when the loan is fully paid. A mortgage origination process is specific to mortgages.