Rookie Loan Officers

by : Chuck Lunsford

It should come as no big surprise that the number of mortgage loan officers has grown proportionally with the real estate market. The problem being faced by the consumer is choosing a loan officer who has the right experience to evaluate their particular situation, and be able to give concise guidance, whether to move forward or explore another option.

It seems everybody from plumbers to chefs to home-makers is quitting their jobs to become loan officers. It's fairly easy, too easy in fact, to get licensed as a loan officer. That along with the lure of making more money off one deal than they might make in a month is too tempting. Just like rookies in sports these individuals makes mistakes, often costly, until they learn the play book. Your task is to avoid being a practice tackling dummy.

All too often consumers trying to refinance to stop home foreclosure find out far too late they have hired a rookie loan officer hell-bent on getting the loan underwritten. After all, that's when they get paid, so it's in their best interest to keep you on the hook all the way through to the bitter end. Choosing the right loan officer can positively impact your wealth in the long run. Here are some tips for choosing the right one.

Do your homework
You are making a decision that will have far-reaching impact on your finances. Do not allow being under pressure to avoid foreclosure overshadow sound judgment.

Get a loan monitor
These are people who have experienced what you will go through, and are willing to look at your paperwork, and show you theirs. They must be near enough to you so you can show them the paperwork and ask questions. I don't suggest using a family member as they might try to protect you instead of being up front. A trusted friend who has been through the mortgage loan process would be my first choice. Probably the best reason to get a loan monitor is they are not under the same pressure you are and will be more objective and level-headed.

Proceed with caution
Understand that the loan industry is basically a big machine, just like the pharmaceutical industry, the automotive industry or the medical industry. Many loan salespeople are the products of a "throw it all against the wall and see what sticks" training program. Few own their own homes, yet they make decisions for you. Seems ludicrous, but unfortunately it's true. The industry makes billions of dollars, and it is insatiable, always wanting more. So comparison shopping is a must.

Check them out
Go to's section on mortgages or your state government web site, or your loan monitor, and check the background of these companies. Visit Google and do a search using the loan officer's name. Do the loan company too, you will be amazed what you will find out. If you discover the loan officer isn't what they portray to be then keep looking.

Have courage
Be ready for the emotional highs and lows. It's important not to give up. Don't become frozen like a deer in the headlights. It is combination of information explosion and aimless direction that may kill your will. You can protect yourself, but you have to work at it -- do your homework, get good help, pay attention and don't lose your nerve.

You can protect yourself, but you have to work at it -- do your homework, get good help, pay attention and don't lose your nerve