Loan officers for decades have largely thought about mortgages in terms of numbers. Factors like interest rate, downpayment and debt load are the measures of a loan’s quality. But today’s borrowers are demanding more of their loan officers.
Homebuying is often the largest financial decision people make in their lives. And before borrowers commit to this life-changing step, they often benefit from advice from people who understand their individual needs and financial goals.
At the same time, homebuying can happen quickly. Homes don’t sit for long in many markets. Offers need to be made. Loans need to close quickly. Borrowers of today demand a seamless, fast and transparent process.
Serving the dual role of cautious financial advisor and speedy loan processor is a tall order. But technology tools are now available that enable lenders to expand their role and provide a faster, more transparent process.
Companies that embrace technology and a new vision about the role of a loan officer are driving mortgage innovation, attracting more clients and elevating the entire mortgage process.
Embrace the technology
Modern homebuyers and refinance clients demand an easy, frictionless experience akin to ordering groceries online or booking a rideshare. Mortgage companies must embrace digital platforms that automate tasks, and provide data accuracy, advanced analytics, real-time market updates and predictive tools.
As with any advancement, there’s a learning curve. Mortgage lenders must focus on ongoing professional development, training loan officers on how to use new platforms effectively. However, the effort is worth it.
Some lenders have cut manual processes by up to 90%, freeing their loan officers to focus on what is important — building relationships, providing strategic financial advice and helping clients achieve their financial goals.
Using tools that simplify complex tasks enable loan officers to improve client service and reduce problems during the homebuying experience. The loan officer can more easily answer borrowers’ questions, from initial applications to closings, clearly outlining all the options, rates and fees.
This level of transparency and service enhances the lender’s reputation. Borrowers are more likely to leave positive online reviews, refer their friends and relatives, and repeat as customers.
Officers and advisors
Mortgage innovation extends beyond processing. Loan officers now provide financial education and wealth-building strategies. Forward-thinking lenders already recognize their role in educating clients about how mortgage choices influence broader financial wellness.
While borrowers of today expect fast and transparent closings, they want to be assured they’re making sound financial decisions. Nagging questions often arise when person buys a home. Is this house too much for my family to afford? How long can we afford to make the payments if one of us loses our job?
Borrowers often leave a closing with anxiety and sometimes with regrets. Sadly, many buyers make the leap without fully understanding the financial implications. As the market evolves, loan officers will increasingly be expected to help clients understand how their home purchase fits in with their greater financial goals.
More lenders are embracing the idea that a loan officer is a financial advisor and are training their loan officers to think that way.
The process starts by understanding the borrower’s financial circumstance and their goals before implementing a mortgage strategy, a commitment that treats clients as individuals not as numbers.
