A mortgage originator is an entity that facilitates the placement of mortgage loans. A mortgage loan originated when the borrower and the bank sign the loan and settlement documents and when the borrower writes the check to be paid to the person from whom the house is to be purchased. A mortgage originator can be a mortgage banker at a bank or it can be an independent mortgage company that helps a client finance a home purchase.
There are several main types of home loans: a first mortgage, a second mortgage or home equity loan, a mortgage refinance, or a construction loan. A mortgage originator can be involved in helping to facilitate each type of loan. A first mortgage is generally used to purchase an existing home, while a second mortgage can be used to provide additional funds to purchase a first home or can be used to leverage a home’s equity for cash. A refinance is used to pay off an existing mortgage to change the terms of the mortgage. A construction loan is used to finance the construction of a new home.
When a person applies for a mortgage, that individual must meet certain criteria. The mortgage originator will help determine what criteria the borrower must meet and will assess to ensure that the individual has completed the requirements. For example, an individual will generally need to provide proof of income in the form of tax returns, as well as information about her credit in the form of her Social Security number which is used to pull her credit score.
The bank or lender will normally evaluate the information to determine if a person can qualify for a mortgage. The lender may also appraise the home or property to determine if it is valuable enough to act as collateral for the loan that was made. The mortgage originator – whether it is a bank, a third-party lender, or a mortgage brokerage – is usually responsible for completing these steps to ensure the mortgage application is credited and the mortgage is a good investment for the bank. or lender to do.
There are several types of mortgage originators a person can use to borrow money. The banks originate the mortgages and the client works with the banker. Third-party companies or mortgage brokerages also originate mortgage loans. A mortgage broker can help a client decide which mortgage origination company is best suited for her needs.
What does a loan processing officer do?
In reality, loan officers help customers with auto, college tuition, home, and business loan applications. They are professionals in evaluating the financial situation of anyone seeking a loan.
In addition, they are aware of loans that suit almost all financial situations. Loan processors decide the applicant’s ability to repay the loan based on the various requirements and conditions of the institution they represent.
Some applicants may be starting a credit history, while some of them may be in the process of overcoming a serious financial crisis. Therefore, mortgage loan officers can find the best option for applicants. In addition, they recommend future special promotions on loans, or any special interest rate that is offered for a short period.
Finally, loan processing officers can now verify loan applications online. Applicants looking for loans can contact many lending institutions instead of relying only on their local bank.
How long will it take me to become a commercial loan officer?
Well, some banks and mortgage companies require loan processors to have a bachelor ‘s degree in business, economics , or finance. Honestly, it can take you about four years to qualify for these jobs.
Additionally, it may take several weeks or months to complete the pre-licensing educational requirements. Similarly, passing the exam to become a licensed mortgage loan officer also requires this much time.
What is the salary of a loan officer?
According to Indeed, the average loan officer salary per year in 2019 was $73,650. In fact, the bottom 10% of earners in this field according to the BLS earn a salary that is just under $32,820 per year, while earners in the top 10% earn a median salary of more than $132,290.
Additionally, salaries change based on employer and job performance. Some loan processing officers earn a fixed salary or an hourly rate. Similarly, other loan processors get a commission on top of their regular compensation.
These fees depend on the number of loans loan officers create and how your loans are repaid.
