The Buck Starts Here

It struck me as funny when a caller asked me, “So just who is this ‘underwriter’ person, anyway?!” He and his family are in the process of buying their first home and have run into delays in closing, due to the “underwriter.”

Your loan officer is probably the person you have initial contact with when asking about a home loan. Their job is to screen you for what you want to accomplish and to suggest loan programs that might work.

The loan processor comes next and works with you to gather all the needed documentation for your loan application.

After that, your file is submitted to the underwriter. This is the most critical stage of your loan application, because the underwriter is the one who approves or denies your loan request. They are reviewing everything submitted to be sure lending guidelines are met. If they don’t like what they see, get ready to provide more documentation to convince them to approve your loan.

In many cases, the loan officer does not have the experience or the skill to know what causes problems later., or maybe you’ve chosen to work with someone who will just “throw it all at the wall and see what sticks.”

That’s when you run into repeated requests for more paperwork, or repeat paperwork, and explanation letters, and copies of deposited checks, and a blood test, and your first born.

Maybe you get your loan, and maybe you don’t.

It doesn’t have to be that way. The family we’re talking about is just now finishing a five month escrow. Had the loan officer been more discerning, problems could have been discovered before the loan application was taken. A different kind of loan could have been used, and closing could have happened within a short time.

How can a consumer know what they’re getting into? Of course recommendations from local friends and family are a good way to know what really happens with any given loan officer.

But there’s also a national database managed by the Nationwide Mortgage Licensing System that will tell you how long a loan officer has been practicing. Google the term “NMLS Consumer” to access the site. For example, my NMLS number is 235051, and there you’ll see my last ten years of work history, and the office I am licensed to represent.

Your mortgage is the largest debt you will incur, and it lasts for a long time. Be discerning about who you want to work with in structuring and closing your home loan.

Tammy Engel has been working for your best interest since 1990. Contact her at 661/822-7325 for purchase, refinance, and reverse mortgage.