Your Questions About Mortgage Loan Officer

Helen asks…

Which is better? a realtor or a mortgage loan officer?

Trying to get into the business. dont know which direction to go in.

John answers:

Depends on when you like to work… If you love working evenings and on weekends, those are your best opportunities to show properties to prospective home owners. If you like working mostly during the day with not much overtime, go for the loan officer. Be advised that a mortgage loan officer is usually salaried… So you get paid whether you have a lot of loans or not. But as a Realtor working on commission, you can pour in tons of hours and not make a sale… Which means you don’t get paid.

Michael asks…

Question about loan officer and mortgage?

We went to go apply for a mortgage, filled out the paperwork, etc and my credit is 700 and his is over 600. He had something on his credit that legitimately wasn’t supposed to be on there, so the loan officer told us if we could get that off there there would be no problem.. We definitely make enough. We got that off of his credit then contacted the loan officer. He told us he had to wait a week, waited a week, pulled it and he said that it was off there, but his credit score hadn’t changed. However, I looked up some loans and I don’t know what type of loan our officer is trying to approve us for because he never told us, but I’ve heard that with an FHA loan you only have to have a minimum of 530.. and if you have a 530-580 you have to put 10% down and over 580 is 3.5% (which we have) can anyone tell me if this is true or what you think is going on here? My loan officer is very difficult to get ahold of. For example, yesterday I called 6 times, and got one call back the next day just to say the score hadn’t changed.. No further instruction or advice.
To clarify, we didn’t just DELETE the collection item. Like I said in the text, it was something that was not supposed to be on his credit in the first place so we disputed it through all 3 collection agencies and they deleted the item.
Again, for clarification, we disputed the item a month ago. The verification of the item is done. The company has been contacted and they said it was an invalid mistake on their part.. and all 3 credit agencies have sent out an e-mail saying the verification of the item is done & it has been taken off his credit. So, it did work. It’s not that it wasn’t HIS. It was a mistake on the companies part.
We don’t have any credit cards. He has student loans and a car payment but that is our only debt. If we paid off his student loans and paid off his car would that boost his credit score enough?

John answers:

You heard wrong about the FICO score FHA requires. You need a minimum of 620 and most mortgage lenders require at least 640.

My guess is that the error that was removed was at least 4 or 5 years old. The older an item, the less impact on your score. By the time something gets close to the 7 year mark, it really makes no difference to your score.

Donna asks…

mortgage???

what parerwork loan officer ask for mortgage?
example like 2 yr of W2, 1 month bank statement, credit report etc

John answers:

It depends on what document type you’ll be going on. Full, stated, no doc, etc…

From your example list I assume you’ll be going “Full Doc” in which everything must be provided.

Here is a list which I give to my clients… Depending which lender your loan officer takes you to some of the things listed below will not be required.

Property Information

– Purchase Agreement

– If you are selling your current home, copy of your listing contract.

– If you have sold your current home, a copy of the settlement statement. (HUD-1)

Income and Assets

– Pay stubs for the last 30 days.

– For the Past two years:
– Names and addresses of each employer.
– W-2s

– Statements for each bank, mutual fund, and/or investment account for the last three months.

– Estimated value of personal property and furniture.

– If you have made any large deposits to your accounts:
– Explanation and source for deposit.
– If large deposit was a gift:
– Signed gift letter (lender can supply).
– Copy of gift check.
– Copy of deposit receipt.

– If you own more than 25% of a business:
– Corporate or partnership tax returns.

– If self-employed:
– Tax returns for the last 3 years
– Year-To-Date Profit and Loss statement prepared by an accountant.

– If you are retired:
– Pension Award Letter.
– Social Security Award Letter.

Debts

– Names, addresses, account numbers, balances, and monthly payments on all current loans.

– Explanation of credit report anomalies, including:
Late payments, credit inquiries in the last 90 days, charge-offs, collections, judgments and/or liens.

– Bankruptcy filed within the last seven years:
– Bring a copy of your bankruptcy papers.

Miscellaneous

– Copy of Photo ID and Social Security Card.

– Residence addresses for the past 2 years
– If you are not a citizen: copy of the front and back of your green card.

As you move down in doc type from full to stated and from stated so on less and less will be asked from you.

William asks…

Anyone ever worked as a loan officer?

I’m in need of a new job, and I recently sparked a little bit of interest in becoming a loan officer. It seems like an opportunity to make a great income, while living a flexible lifestyle. Although I really don’t know very much about the field. I was hoping to find someone who can tell me their opinion about the field. Perhaps things to look for, and things to watch out for if I do go in the field. The things you like, and don’t like. The steps I should take if I do want to get in this field. etc.

I do have 5 years of collection experience and I was always one of the top collectors, so I’m pretty sure I’d catch on quick since I’m already used to negotiating finances with people. I’m just really tired of collections and don’t want to do it anymore, looking for a better opportunity.

PS: If you know of an even better opportunity for an ex-collector, I’d like to hear it also.

John answers:

Loan Officer and Loan Counselor: Career Information
From Dawn Rosenberg McKay,
Your Guide to Career Planning.
FREE Newsletter. Sign Up Now!
Job Description: Loan officers work for banks and other financial institutions. They help individuals and businesses obtain funds from these lenders. Loan officers specialize in commercial, consumer and mortgage loans. Loan counselors assist loan applicants who have difficulty qualifying for traditional loans.
Employment Facts: Loan officers held almost 291,000 jobs in 2004. Loan counselors held about 34,000 jobs in 2004.*
Education: To work as a loan officer or loan counselor one must generally have a bachelor’s degree in finance, economics or a related field.
Other Requirements: Job candidates should be familiar with computers and their applications in banking. While there are currently no specific licensing requirements for loan counselors and officers working in banks or credit unions, training and licensing requirements for loan counselors and officers who work in mortgage banks or brokerages vary by state. These criteria also may vary depending on whether workers are employed by a mortgage bank or mortgage brokerage.
Advancement: Capable loan officers and loan counselors, once experienced, may move to larger branches of their firms or to managerial positions. Those without adequate education will have trouble advancing without additional training.
Job Outlook: Employment of loan officers is projected to increase more slowly than average for all occupations through 2014. Those with college degrees or experience have the best prospects. Employment of loan counselors is expected to increase faster than average.*
Earnings: Median annual earnings of loan officers were $48,830 in 2004. Median annual earnings of loan counselors were $35,700 in 2005.*

David asks…

It’s 2 weeks before closing and I don’t trust my mortgage loan officer.?

I’m in the process of purchasing a home my closing day is nov 6th, By oct 3rd I filled out lots of paper work I supplied w’2s paycheck stubs bank statements and alot of other paper work. !st I find out she didnt send the initial approval paperwork to the builders by the deadline even though it was discussed in detail. Yesterday my loan officer sent me a brand new application showing interest rate of 4.875 instead of the 4.750 that it was originally suppose to be. Now today I get a good faith estimate that show Im paying over 4000 for discount memo fee(points) on the other 2 estimates showed only 195.00. I just got the paperwork in the mail tonight but i hadn’t talked to the lender. I just don’t know what to do at this point. I feel like even if she do remove the points she will still surprise me with some other fee at the closing table.
This is real estate guy. My rate was locked or thats what I was told. I believed her since I specifically asked to locked the rate. And I thought after fillling out 100 pages that I could trust the lady. It was my loan officers job to send over the approval paperwork other people could just make up anything. Bedsides if she had a problem or didnt want to send it she shouldn’t have told me she would send it. It ridicous for her to send me a new good faith estimate in the mail without even mentioning it over. So many thing are already done including the appraisal so for Mr real estate guy to assume that the rate wasn’t lock you a ridiculous as well as u must be a predatory lender as well. Have a great day.

John answers:

Here is the problem. Just by doing a loan application, you are NOT!!! Locked into the interest rate. The interest rate changes everyday until you actually lock in by signing a lock in agreement with the lender.

So at the time of application, you were given a good faith estimate of 4.75% with $195 discount points. Today, when you are looking to lock into a rate, rates have increased. To get the 4.875 rate, you now have to pay $4,000 in points. You can still get a no point loan, but the rate will be in the 5%’s. If you had liked the 4.75% rate, you should have locked in on the spot. You played the market, and rates increased.

Based on what you have posted, I don’t see that the lender has done anything wrong.

In regards to the lender not sending anything to the builder. Usually the buyer provides the information that the builder needs. The lender works for you, not the lender. The lender really shouldn’t be giving the seller any information. They should give it to you and you give it to the builder. Even if this lender is a referred lender of the builder.

I would recommend that you shop the rate and the points. The current rate is over 5%. Without knowing the loan amount, there is no way to tell you if the $4,000 is out of line.

EDIT*********** you asked a question and I tried to explain what happen. NO!!!!!!!!!!!! You didn’t lock into the rate and that appears to be the problem. There are FORMAL docs to sign to lock into the rate. Period. You know what happens when you assume.

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