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You probably never thought you'd be swiping right for your mortgage loan officer, but that financial advisor could be your soul mate — your financial soul mate, that is. With the wide range of knowledge your loan officer has and the few secrets between the two of you, getting that mortgage loan might just be the beginning of a beautiful financial friendship.
He knows about your debt
Got a thing for department store charge cards? Does your credit report indicate a midlife crisis in the form of a loan on a sports car? Divulging your deepest, darkest debts might be scary with your significant other or best friend, but your mortgage BFF already knows the worst; he's seen your credit report and knows about that Nordstrom balance you're carrying around. Even better? He can probably give you some pointers on reducing it.
He's trustworthy
You wouldn't hand your social security number or bank account statements over to just anyone. But when it comes to your mortgage loan officer, you've already handed over your most guarded personal information. It's your mortgage loan officer's job to protect this information (in fact, he is legally required to safeguard it). Now if only all of your friends were this trustworthy.
He can help you see the big picture
When you're looking to buy a house, it's easy to get caught up in the emotional aspect of a new home. When all those emotions are involved, you might get blinded by hardwood floors or marble countertops and end up missing some big financial red flags. Tom Stone, mortgage officer at Guild Mortgage, has seen this effect before.
On his blog, Stone advises, "When a decision is made leaning to the emotional side, then it runs a higher risk of causing other emotions later on (stress, worry, regret, to name a few). In other words, excitement today about the new purchase may lead to frustration and contention about your new purchase later." Your BFF can help you see the big picture — the one beyond those monthly payments.
He can do the shopping for you
If you're like most Americans, your home is the single largest purchase you'll ever make. That's a pretty important fact to consider, especially since, according to the Consumer Financial Protection Bureau, nearly half of Americans don't shop around for a loan when they buy a home (and the CFPB reports that saving even just a half a percentage point on your mortgage rate could save you as much as $3,500 in mortgage payments during the first five years of the loan).
Not only that, many homebuyers are unaware of the factors that constitute a good deal. Mortgage insurance, down payment rates, debt-to-income ratio, credit score, you name it—if it has to do with your personal finances, it will have a say in your mortgage rates.
If you've already got a mortgage officer who is also your best financial friend, chances are he'll analyze all the factors for you, taking into account fees and other speed bumps that may come along the way. Your BFF will shop for the best deal for you or help you become a candidate for one.
He wants it to work as much as you do
Let's be honest; relationships take work on both parties. And if you've ever had a one-sided friendship, you know how frustrating it can be. Your mortgage loan officer BFF, however, has your homeownership goals at top of mind; in fact, his success depends on his ability to close your deal successfully and responsibly. In a world where, according to Bankrate, 30 percent of purchasers are turned down for a mortgage, you could use a partner as invested in the transaction as you are.
Sure, you might just be looking for some sound financial help, but who knows? Your mortgage loan officer could wind up as your best financial friend (forever).
The information provided herein has been prepared by a third party company and has been distributed for education purposes only. The positions, strategies or opinions of the author do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company (NMLS ID: 3274, equal housing lender) or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.
