The ugly truth about getting a home loan -they're a hassle!

You can reduce this hassle by working with the right loan officer -but how do you know when you find the right one?

Some tips to know.....

When you ask questions --and you don't get clear concise answers-- or if they respond with "I"ll check with my manager or underwriter for answers" run the other way.  This is a sign of an inexperienced or low ability loan officer--and that inexperience or lack of ability will cause transaction delays and issues-- especially with tougher to qualify buyers and/or unique properties.

No matter who the lender is--it's the mortgage loan officer (MLO)-- that makes or breaks the deal.  Think of a race car--the better the race car --the better the chance of winning- but........ the skill & experience of the driver is what makes the difference! And big lenders and banks can't hang on to the best drivers (loan officers) since they typically pay their MLOs a lot less than what they make if they work as a mortgage broker, and even better-- most mortgage brokers have much better rates than banks and big lenders-you"ll save thousands of dollars!

Other ways to check up on MLOs:

• Look up their work history on NMLS consumer access. Also, look for reviews online-not just the lender reviews--you need individual loan officer reviews. If not in the high 4's on a scale of 1 to 5, run!

• Check their loan officer NMLS ID number -just like a real estate license number--the lower the number the longer they have been licensed.

• If the loan officer NMLS number is issued by a bank that's a big red flag--banks give away NMLS IDs like candy, even to tellers --and little to no training or real world home loan experience is required.

And you can find the right loan officer with CAKE

The acronym CAKE represents the qualities a loan officer needs to possess. With these a loan officer can reduce hassle, explain everything and provide a home loan experience every home buyer or refinancer deserves. CAKE stands for: Communication -- Ability -- Knowledge -- Experience

Communication

A loan officer should respond promptly, providing clear and easy-to-understand details, and be prepared to answer all questions accurately and swiftly. They should make use of phone calls, texts, and follow-up emails to document and elaborate on answers and figures. One common complaint from home buyers and refinancers is the lack of explanation and delayed responses from their loan officer. A loan officer should be available to address your inquiries promptly, even outside regular hours, including weekends. Since most communication between home buyers and agents occurs outside standard business hours, having a loan officer from a bank or one who is only accessible during business hours can often cause delays and complications in the loan process.

Ability

Communication involves putting in effort, while ability is a trait that one possesses either naturally or through experience. For a loan officer, it is crucial to possess the skill of swiftly assessing a home loan scenario, identifying any concerns or potential challenges in the home buyer's eligibility criteria and the assess the property they intend to purchase for obstacles to approval. Subsequently, the loan officer should be capable of articulating the necessary steps to resolve any identified issues. I frequently receive feedback from agents and buyers who, while working with other loan officers, express surprise at encountering last-minute hurdles during a transaction, or even have buyers facing rejection. A loan officer should have the foresight to anticipate potential obstacles and assist both the agent and home buyer in preparing to address them effectively.

Knowledge & Experience

Knowledge and experience are closely connected, as one is meaningless without the other. A quote sums it up: “Knowledge without experience is just theory; experience without knowledge is blind.”

Obtaining a thorough understanding of home loans requires dedication - investing time in quality education and training, staying informed about the latest rule changes, and continuously learning from interactions with other real estate and mortgage professionals. Seasoned professionals often emphasize that nothing accelerates knowledge acquisition like real-world experience, where mistakes are made and valuable lessons are learned. The most successful individuals consistently strive to comprehend the intricacies of transactions, ensuring that errors are not repeated and enabling them to better serve borrowers and referral partners.

Expertise is acquired through time and numerous home loan deals. Simply having 20 years of experience as a loan officer does not guarantee that loan officer has closed thousands of transactions or has the expertise required to excel in the field. It is possible for someone to sustain their career for years by relying on colleagues to constantly assist them, without having the ability of putting in the effort to acquire the necessary knowledge.

Most important point!

You can always choose the loan professional you work with. Ask questions, demand detailed, accurate answers and choose wisely!