Conversations with a lender:
Francine Martineau and I have been working together for sometime. She and I had a conversation aboutLending which I found very interesting.
Francine, how did youbecome a Loan Officer in the first place?
I had been sellingstocks, bonds and mutual funds for several years and was curious about themortgage business . . . it sounded intriguing. So I talked with a MortgageBroker friend. He tried to discourage meby talking about all the pitfalls, but I was undaunted. A year later I showed up at local MortgageCompany saying I want to be hired. Ibrought two deals with me to convince them. They were too busy to train me, butone of the long time Loan Officers took me under his wing. I will always begrateful to him.
Always best to learnfrom those who do a job. What is itabout this career that keeps you happy?
The thing I love about it is the people. I love working withpeople who are doing something with their lives. There is such a wide varietyof circumstances people set up for themselves to create the lifestyle theywant. It is terribly interesting and keeps me involved with life.
What tips would you give potential homeownerswho are thinking ahead and want to prepare to buy a home?
The biggest tip would be to sit down with a Mortgage lenderand map out your path to home ownership. People make credit mistakes theywouldn’t have made if they’d had a little knowledge. I also recommend keeping a scrapbook ofthings that you like in a home. This may seem hokey, but it helps you focusedon what you want. I have a friend who wanted to buy a house and I gave him thisrecommendation. Later, when he was moving in to his new place, he came acrosshis scrap book items and, to his surprise, everything he had envisioned was presentin the home he bought.
That’s verycool. So, if someone hasn’t planned, and theircredit doesn’t look so good, what can they do?
People do come to me who have not done any planning and mostare still able to qualify. If not, I can usually work with credit agencies toclean up a few things and get them into a mortgage right away. Some need alittle more extensive work.
What is the actual process of getting a loan?
The very first thing is to talk with a lender. I do personto person or telephone appointments. At this first meeting questions go bothways. I ask some financial andlifestyle questions, borrowers ask me about the process and fees. At that timeI do an initial pre-qualification so they know what range will work forthem. I give their REALTOR a documentcalled a Loan Status Report (LSR). Thisproves to a Seller they can buy the property. Once they have an acceptedcontract and Escrow is opened, I order an appraisal. At the same time the Title Company researchesthe property to see if there are any problems which would prevent a sale. Theythen issue a preliminary title report. Once the appraisal and preliminary title report are approved I set upthe best loan for the borrower’s advantage and one that will get an underwriterapproval (an underwriter is the company that funds the loan).
So you and the Buyerare the real decision makers?
Actually the underwriter is also a decision maker and canhave me or the appraiser go back and do something different.
What about theprocessor, what does that person do?
The processor is really a paper handler. They are notdecision makers but they do see to it that the right stuff gets to the rightplace and that’s important. Buyers (loanapplicants) usually have contact with only me.
I bet some peoplewant to be involved.
Some do, but it’s a sure way for a borrower to get theirloan put to the back of the pile. Sometimes a processor will call a borrower togo over something (with the permission of the loan officer), but there is noadvantage for a borrower to intervene. I am the borrower’s advocate. I work inconcert with REALTORS®, Title companies, and appraisers. It takes a group effort to put someone into ahome. Thanks Francine, this has beengreat.