To make an informed decision when it comes to your homebuying team, you’ll want to intimately understand which piece of the puzzle is held by each party. While you may be familiar with the role a real estate agent plays, the job of a loan originator may be more of a question mark. Read on for the role your loan originator will play in your journey to homeownership, as well as what you can expect while working with them.
What is a Loan Originator?
A Loan Originator or Mortgage Loan Originator (MLO) is the front door to the mortgage getting process. An MLO has two jobs; the first is to persuade you that their lending prowess is your best borrowing option. The second is to help you navigate your way to the closing table. A Loan Originator is a salesperson first and a loan approval chaperon second.
What does a loan originator do?
The loan originator works with borrowers to evaluate loans and helps to ensure that the loan gets funded when needed. To do so, loan originators find lender programs that match the borrower’s situation, and they guide applicants through the process. They help clients gather information needed to close a loan, verify that information, and coordinate when any questions come up during underwriting.
They may also collect your credit score and other necessary documentation, provide applicable loan options, answer financing questions and negotiate on your behalf.
What does working with a loan originator look like?
Like any member of your homebuying team, your loan originator is there to make your experience smooth and streamlined. The right loan originator will possess relevant experience, provide support in stressful situations and communicate effectively. They might also save you money. According to a 2018 Freddie Mac study, nearly half of all homebuyers forgo shopping for better rates (Freddie Mac, 2018). A good loan originator can help connect you with the right loan and ensure you’re not leaving money on the table.
Your Loan Originator is an important piece of your home ownership puzzle. A home will likely be the biggest investment of your life, so you’ll want to make sure you have the right people on your team. Just like your real estate agent, aim to find a good fit when it comes to your loan originator for a streamlined and enjoyable home financing experience.
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