With the new standards of terms of credits lenders are performing a lot more due diligence on the borrowers than they were a year ago.
In residential loans, the loan information is focused on creditworthiness of the borrower.
On larger loans, loan officers are practicing due diligence in knowing what is happening with the paperwork and knowing what is in the file.
In previous years, if a credit score was high, lenders did not give the credit report much attention. A good broker will, regardless of a high score, give attention to the report regardless of a high score or not.
The broker needs to be able to create a package and submit it to appropriate lenders. In order to do this, the broker needs to understand what is important to the buyer.
A valuable broker is someone who can effectively showcase a loan while maintaining their client's best interest. They retain open communication to the client giving information such as who they have submitted the loan to and to feedback that may help the client. If the loan has options, they explain the options, give pros and cons and then help the client understand what is in their best interest.
When the real estate market crashed, the entire industry was affected. Now, everyone from loan officers, underwriters, processor, etc. are getting back to basics.
A knowledgeable loan officer is contacting lenders and understanding what the underwriting criteria is. It serves them to know how that lender treats stated self-employed borrowers and borrowers who have special circumstances. The officer needs to know what the lenders are looking for.
The new set of requirements now mean loan officers are required to reevaluate their pipe line, meaning reevaluate the types of borrowers they are working with.
If a borrower is wishing to refinance, a good loan officer will be proactive with their client. A restructure of assets may be in order to qualify to get out of an ARM. In some cases this can take up to a year to do.
A potential home buyer would greatly benefit from understanding what they can easily afford and to educate themselves on the fluctuations of the market.
Referrals are the best way to find a loan officer. Ask your broker, family, and friends if they know someone who is knowledgeable in the field. Getting a good loan officer can help save you money as well as, help in getting the property at the right price.
Mortgage brokers do a lot of business. The have relationships with lending sources, loan officers, and other people in the field. Their expertise is what the buyer is purchasing along with their opinion, which in a good broker, is not biased.
As circumstances change a broker can give advice as to what the options are. They can advise alternatives, explain costs among other types of information.
Twenty minutes spent talking with a great mortgage broker can reveal options worth looking into.
Based on excerpts from the commercial real estate investment talk show Capital Synergies. This episode's contributing guest speaker was Mr. Britt Miller, Vice President of Steelhead Capital. By Senior Staff Writer, William K. Matthews.
