The 3 Thing Loan Officers Look For When You’re Buying A Home

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Preparation is key in the home buying process so it’s never too early to start the conversation about securing a loan. In this blog, we discuss the three key things a loan officer will look at when you’re buying a home. 

 

  1. Credit

The first thing a loan officer will look at is your credit score and what’s reported on your credit. 

 

  1. Employment history

Next, loan officers will look at the last two years of your employment history and the type of income you had coming in from those jobs. They want to see that you have a history of making enough money to cover your mortgage payments.

 

  1. Financial assets

Finally, loan officers look at your liquid funds – the money you have in any checking and savings accounts, or any additional funds. 

Tips for working with a loan officer:

Working with a loan officer is a crucial part of the home-buying process, as they play a key role in helping you secure financing for your new home. Here are some tips for working effectively with a loan officer:

  1. Start Early: Begin working with a loan officer as soon as possible, ideally before you start house hunting. This allows you to understand your financing options, get pre-approved for a mortgage, and establish a budget for your home search.

  2. Shop Around: Don’t hesitate to shop around and compare loan officers from different lenders to find the best fit for your needs. Look for loan officers who are experienced, knowledgeable, responsive, and have a track record of helping clients successfully secure financing.

  3. Communicate Openly: Maintain open and honest communication with your loan officer throughout the process. Be upfront about your financial situation, goals, preferences, and any concerns you may have. Provide all requested documentation promptly and accurately to facilitate the loan application process.

  4. Ask Questions: Don’t be afraid to ask questions or seek clarification on any aspect of the loan process that you don’t understand. Your loan officer is there to help you navigate the complexities of mortgage financing and make informed decisions about your loan options.

  5. Understand Your Options: Work with your loan officer to explore different types of mortgage loans, including conventional loans, FHA loans, VA loans, USDA loans, and other specialized loan programs. Understand the pros and cons of each option and choose the one that best suits your financial situation and goals.

  6. Be Realistic: Be realistic about your borrowing capacity, monthly payments, and overall budget when discussing loan options with your loan officer. Consider factors such as down payment requirements, closing costs, interest rates, and loan terms to ensure that you can comfortably afford your mortgage payments.

  7. Stay Informed: Stay informed about the status of your loan application and any updates or changes to the loan terms. Keep in touch with your loan officer regularly and follow up on any outstanding tasks or documentation needed to move the loan process forward.

  8. Review Loan Documents Carefully: Carefully review all loan documents, including the Loan Estimate, Closing Disclosure, and other disclosures provided by your lender. Make sure you understand the terms, conditions, and costs associated with your loan before signing any agreements.

  9. Be Patient: Understand that the loan process can take time, and there may be delays or challenges along the way. Be patient and trust your loan officer to guide you through the process and address any issues that arise promptly and professionally.

  10. Provide Feedback: After closing on your loan, take the time to provide feedback to your loan officer about your experience. Share what went well and any areas for improvement to help them better serve future clients and maintain a high level of customer satisfaction.

By following these tips and maintaining a positive and proactive approach to working with your loan officer, you can navigate the mortgage financing process with confidence and achieve your homeownership goals.

 
 
 
 
 
 
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