the right loan officer
to make home buying easier
Special to RoundAbout
Mortgages. Just saying the word makes most people have nightmares about
the process they went through. Or sometimes the process seems like a
big mystery. Buying, building or refinancing a home has never been easier
than now. In addition, mortgage rates are still very low. But where
does a potential borrower start when trying to decide who to use and
what loan is right for them?
There are several ways to know if a bank or mortgage company
is right for you. The starting point is finding a loan officer.This
person should be able to:be friendly, honest and open to your situation;
provide you a Good Faith Estimate based on the information you provided;
offer several loan options to suit your needs or explain why you did
not get approved and help you understand what you can do to get approved
at a later date; answer all of your questions regarding financing a
If the loan officer you call cannot complete these items at a minimum,
keep looking for someone who can. Just because you call a company does
not mean you are required to have them pull your credit. Although when
you do apply for a mortgage loan, you have a 14-day window to apply
and have your credit pulled. During this period, each mortgage inquiry
will only count as one inquiry and will not affect your credit score.
Keep in mind that if you do not allow the mortgage company to pull your
credit report, the information they provide to you may not be accurate.
The only way for a loan officer to give you a completely accurate quote
is by pulling your credit report.
When a loan officer gives the borrower a quote, he should provide several
scenarios. Most borrowers qualify for more than one type of loan. There
are many options available to most borrowers, and it is important to
explore the different options.
The loans that are available to this generation of home buyers are different
from the loans offered to past generations. The loans available today
are much better and benefit the customer more. Mortgage lending is constantly
evolving and increasing the options available to the borrowers. Ten
to 15 years ago, it was impossible to get a 100 percent loan on a mortgage
loan. Since then, mortgage lending has seen PMI, or private mortgage
insurance, come about to allow 100 percent financing.
Now in this decade we are seeing the 100 percent loans evolve into many
different variations. Such variations include interest only options,
80/20 combos (where the 100 percent loan is split into two parts, and
8 percent first and a 20 percent second to avoid PMI).
The options for mortgage loans, whether buying, selling or building,
are many. A good loan officer will guide you from beginning to end in
the loan process, during which the borrower by the end of the loan,
will be more educated about his mortgage and the loan process.
Any mortgage company can tell you what you want to hear, but try getting
information in writing, ask a lot of questions and feel comfortable
with the answers you get. Then you can feel confident with your choice
of loan officers.
As a borrower, do not be afraid to explore the different choices in
loans that are available to you. There might be a scenario that will
fit better than the standard 30-year fixed rate mortgage. And even if
there are no better options, you will know without a doubt that you
are getting the best loan for your situation.
Ultimately, the choices are the borrowers. It is up to the loan
officer to provide the answers for the borrower to make good, educated
decisions. The borrower should be in control of the loan he chooses.
With the right information, home buying and refinancing can be easy.
Toni Pierce and her husband, Wayne, own and
operate Classic Mortgage in La Grange, Ky. Call them at (502) 222-8896
or visit: www.classicmortgageky.com.
Back to April 2005 Articles.