When taking your first step toward anything in life, it’s nice to have some guidance. A few significant steps include purchasing a home or car or starting a business. You may need to secure a loan to start, but the process can be overwhelming. However, with the right help, you can move forward with confidence.
A friendly bank loan officer can demystify the path to the loan you need and show you how to take your first step toward your goal. If you have wondered, “What does a bank loan officer do,” keep reading to learn more about how these finance professionals work with lenders and borrowers and where you can connect with a loan officer to get started.
What Does a Loan Officer Do? Five Critical Roles of a Loan Officer
Loan officers have a wide range of responsibilities for their customers. The type of loan you are seeking will affect the officer’s involvement. Some loans, like a small personal loan, require fewer meetings and less paperwork and communication with the officer than a mortgage or commercial loan.
In general, a loan officer’s role includes the following five functions:
- Offering a point of contact for a lending institution. A loan officer is the first point of contact when applying for a loan, as they follow up with borrowers or meet with them to discuss their options. Once you’ve met with the loan officer, they will continue providing updates on your loan’s status and approval or denial.
- Assessing your financial situation. A loan officer assists in managing the bank’s overall loan portfolio, so they need to understand how much risk the bank will assume if they offer you a loan. They are typically the first individual to review your loan application and creditworthiness, including your credit score, current income and debt.
- Educating you on your options and how your loan will work. Large loans, like mortgages, can be complicated products. A market research study by the Federal National Mortgage Association, also known as Fannie Mae, revealed that less than half of consumers felt confident going through the mortgage process. Education is critical, especially for first-time homebuyers, who may feel less confident understanding how a mortgage works. The loan officer is there to educate customers and help them get a clear picture of their borrowing power, rates and potential payment plan. In addition to educating customers on the process, a good loan advisor is informed on the latest local and economic trends that could affect your loan.
- Ensuring that proper documentation and clerical items are completed in a timely manner. A good loan officer will make sure that the borrower completes essential paperwork. If you are purchasing a home, the loan officer will coordinate with the title company to make sure that the home’s title is free of issues and help prepare documents to sign at the closing.
- Following up on delinquent payments. Once a loan is provided, the officer will follow up with customers if payments are missed. If you believe you won’t be able to make a loan payment due to an emergency or other factors outside of your control, you must contact your loan officer to talk with them about your situation.
After exploring a loan officer’s role, let’s examine what you should do to make your first meeting with a loan officer successful.
Meeting With a Bank Loan Officer
If you are meeting with a loan officer for the first time, it’s essential to bring all the necessary information to avoid repeat trips. It’s a great idea to contact the individual you are meeting with ahead of time to create your loan info checklist.
Where Can I Find a Loan Officer?
While there are many avenues to finding a loan officer, it’s a great idea to start looking in your local community. A loan officer from a local bank will be heavily invested in the community and its members. When you get a mortgage, personal loan or commercial loan from a local business, you aren’t seen as a number; you are a valued member of the community.
If you live in the mid-Missouri area and want to work with a loan officer who gets you, the loans team at Community Point Bank is ready to assist you. Visit our contact page or start a loan application online today!
