What is a Loan Officer?

Loan officers are financial professionals who work for banks, credit unions, and other financial institutions. They are also called mortgage officers, loan agents, and mortgage advisors. They are licensed by the NMLS in individual states. Licensing requires classes, testing, background checks and more. The loan officer's primary role is to evaluate loan applications, collect proper paperwork documentation from borrowers, make the borrower appear the best possible on paper for Underwriters, auditors, and servicers. The loan officer finds the box that the borrower can fit inside, with many mortgage products to choose from the borrower may actually only match with a few. Loan officers are responsible for assessing the creditworthiness of borrowers and determining the amount of money that can be safely loaned. They also provide guidance to borrowers on the various loan products available and help them to understand the terms and conditions of their loans.

Loan officers can play a critical role in helping individuals and businesses to access the credit they need to purchase a home, start a business, or invest in other opportunities. They can help borrowers to find the right loan product that meets their needs, and they are responsible for ensuring that the loan process is completed in a timely and efficient manner.

It is crucial to find a responsible and trustworthy loan officer, who will provide you with the best options, rates, and terms. A loan officer with years of experience can share their knowledge and caring with borrowers.

The loan officer should be able to answer every question a borrower asks, they should be available by telephone to clarify all the details, and one you can trust their answers. A loan officer will have a network of other professionals to help you: referrals for insurance, CPA, attorney, handyman, escrow, title, valuation, and Realtors are a few of contacts you may need during the purchase transaction and for the years that you own a property. Loan officers are considered the brains of the transaction.

Now Is The Time To Invest In Real Estate

 

Investing in real estate during an economic downturn, or when the "knife is falling," can be a challenging and risky proposition. During such times, property values and rental incomes may decrease, making it difficult to turn a profit or even to maintain the value of your investment. We cannot know if we are entering another Global Recession, but I feel we are in recession in America now, January 2023.

However, it's also possible to find good deals on properties during a downturn. Prices may be lower, which can make it possible to purchase properties at a discount. Additionally, rental properties may be in high demand if people are unable to afford to purchase a home. Perhaps this is the perfect moment to get preapproved for a home loan and be shopping for deals.

If you are considering investing in real estate during an economic downturn, it's important to do your research and to be aware of the risks involved. It's also important to have a clear strategy in place, such as focusing on long-term investments or looking for properties in areas that are less affected by the downturn. My best advice is to stay the course on you job. Show up early and become more valuable. Having that W-2 income will make it easier to close on your investment property with a conventional loan. Even though interest rates are high, you will find property that cash flows.

Additionally, it is important to have a good cash reserve, as the market can be more volatile during an economic downturn and it can take longer to find tenants or buyers. Save your nest egg my grandmother always said.

Be prepared to close and immediately fill the rental with an excellent tenant. What is an excellent tenant? One with no evictions, FICO of 680, four times the rent as income that you verify, and who "fits" your location.

Overall, investing in real estate during an economic downturn can be risky but with the right approach and due diligence it can also be an opportunity to find good deals on properties.

$95 K trick

 

$95K 

Trick Here’s

a simple trick that will

save you money on your mortgage.

On a 30-year $400,000 mortgage

with a 5.50% interest rate,

your principal and interest payment is $2,270

a month.

If you round that up to $2,500

 and make that payment over the course of

 the loan,

 you will pay off your loan 5 years and 10 months early..

.            You’ll save $95,000 in interest paid.

Foreclosure Study

 

Customer notice of default filed on them early November.

House value about $1,200,000

Bought for $500000 thirty years ago

Loan amount in

default $110000 filed October 28, 2022

Options to foreclosure:

Here are a couple strategies:

1. Sell and take the money to pay cash for a home in lower price point and save some of the cash.

cons: she will have capital gains, has to move

2. Refinance with a reverse mortgage and only pay property taxes and insurance

cons: costly, need to know exactly what her social security income is if she can qualify

then do things to increase income (roomate, part time gig work). She is old enough. Unsure 

what her income really is... around $2000

3. Get a hard money loan

cons: short term only good for 18 months, VERY expensive, then she needs a 

plan how to exit from this which probably is to sell

4. File bankruptcy

cons: good for 18 months, ruins credit, she won't be able to get a loan. Only option to sell when

the bankruptcy is discharged. Stressful.

5. There are shared equity companies which are 10 years BUT she has to qualify 

with her social security. They check to see she is maintaining house to their standards.

Eventually she sells and they get paid and take the gains.

Cons: need income to qualify, get less when sold, costs, lack of choice in managing home

6. Get the San Francisco HELP loan which is $50000 LOAN

This does not stop the foreclosure, it is not enough to pay off the exiting

$110000 approximate owed. This program takes 3 months to get approved.

She has to qualify with social security now for $160000 loan. Home counselors

have zero ability to negotiate with the servicer and lender.

cons: not enough time and not enough money in the $50000 loan to fix the

problem

7. Do nothing. Bank sells the house for $500000 to insider on the due date and

she might get nothing. The costs of legal and foreclosure are added daily to the

balance. 

cons: stress and homeless

What we need to help her:

Social security award letter (it's pink and black and white and is mailed Feb 1 each year

mortgage bill

contact for fire insurance agent

Then we can help advise if she can qualify for a loan or what to do.