Defining Loan Officers

Published on December 2nd, 2014

What a Loan Officer Actually Does


In the mortgage industry you will hear a lot of talk about Loan Officers (LOs). These foot soldiers are the backbone to many companies and not only act as liaisons between companies and clients, but also as guides who help customers find the best loans for their needs. If you’re ready to contact some of the vLoan officers, go online and start the process using our free multi-step calculator for a rate quote.


Loan Officers wear many hats. They often research loan options that will best meet the interests of their client and the bank or institution that is extending the loan. LOs also act as counselors, providing guidance and feedback to borrowers as they go through the home loan approval process. They troubleshoot credit history issues with potential borrowers. LOs act as the point of communication between Underwriting and the borrower when going through the approval process. While this list continues, we want to help you understand the specific tasks our LOs take on and how their services are not only essential to us, but also those who are in the process of purchasing a home.


  • Guidance: When you first start working with a Loan Officer, it’s normally to help you get through the preliminary financial discussions. This is the time when a LO will sit you down and go over your finances, credit history, and debt to help you decide on your monthly budget. These initial meetings will also help you get an idea of the price (or price range) of a home you can comfortably afford. Outside of the introductory phase, LOs often offer a reservoir of information on the different loans available and make educated suggestions on loan options, based on a client’s needs or circumstances. These professionals are well-versed in the loans available and can quickly determine and lead you to the best loan for your unique financial situation.


  • Clear communication: After working with an LO to find the right loan for the home you want to buy, they will also help you through the loan paperwork and approval process. LOs are strong communicators who act as liaisons between those who are processing your loan application and the borrower. For example, if Processing notices something is missing in your application, it’s up to the LO to clearly and effectively communicate this to the borrower. It’s also their job to help the borrower acquire these documents or updates and send them back to Processing in a timely manner.


  • Troubleshooting: Getting approved for a home loan can be quite a process, between the paperwork and waiting times, many potential buyers are aware of the stress that comes with buying a home. However, no matter how organized you are, when there’s a lot of paperwork to manage, things can go awry. This is where an LO is crucial. There are many circumstances where a loan reaches Underwriting and an error is found. When Underwriting reports this error to the LO, it is their responsibility to work with the borrower and help them troubleshoot this problem as efficiently as possible. If the LO misses a detail or doesn’t fully communicate with the borrower, the loan could be rejected. This not only adds to the pressures of an LO’s job, but also to any potential buyer who may be shopping for a LO to help in the homebuying process – it’s best to find a seasoned LO who has established themselves as an expert and shows that they have a lot of experience under their belt.


When it comes to buying a home, an experienced Loan Officer is an essential piece of this process. LOs often have a minimum of a couple decades of experience and are very knowledgeable in the different loan options offered, along with how to effectively work within and with a budget. If you’re thinking about buying a home or have any questions for one of our vLoan Partners, please contact us today.


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