That probably sounds a little strange coming from a guy who’d been in the mortgage biz for 30+ years. But in all reality, sometimes it may not be necessary. Not recommended, but sometimes not crucial. For example, someone who has purchased several homes over the years and financed every one of them. Or maybe someone with a simple mortgage request such as a 20% down conventional loan with a 30 year fixed. I can see where there may not need very much loan officer consultation in these and similar situations.
But there’s always the possibility of providing additional financing options the borrower may not be aware of. Maybe a new loan program has been introduced or there are some special local and state government sponsored programs that might provide a better option. Perhaps shuffling up the term of a loan from 30 to say 20. Instead of straight consultation, it’s more of a situation where other financing options are available that the general public wouldn’t readily know about.
On the other hand, for someone buying their first home, it is crucial to find and speak with a loan officer. It might be tempting at first to go straight online and find a loan officer but in doing so, you’re not familiar with that loan officer’s background. What’s the experience level? How long have they been providing mortgage loans? Do they come highly recommended?
While you can certainly find a loan officer online, what you really should do is find someone local who you can trust and has been recommended to you. Here’s the thing: If an online-only loan officer messes up a loan file, that loan officer simply moves on and pulls another from the pile. There are no consequences to his/her reputation. On the other hand, if you do find a local loan officer, that reputation is indeed on the line.
Loan officers live by the referral. They solicit business from a variety of sources and over time build up a reputation and following that soon referrals come to that loan officer on a regular basis. If the loan officer messes up a loan file, it hurts his/her business. The reputation takes a hit and those that previously provided referrals are now more reluctant to do so.
Do you always need a loan officer? In a very few instances, maybe not. But my question is- why wouldn’t you?
