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What to Look for In Your Loan Advisor

What to Look for In Your Loan Advisor Choosing your home loan advisor is one of the most important decisions you can make throughout your home-buying process. These professionals will be able to guide you through the complexities of loans with clear communication, nationwide expertise, and attention to your wants and needs.

In this article, we’re looking at all of the professional and personal traits a loan advisor should have. We’ll also briefly discuss some underrated traits among loan advisors you should look for while considering your home loan.

How to Hire a Loan Advisor

Effective loan advisors feature a combination of lending expertise, salesmanship, and personal skills. They understand your loan needs, how to negotiate loan rates, and can evaluate your creditworthiness. It can be difficult to assess your loan advisor’s ability to underwrite while adhering to local, state, and federal regulations.

One of the best ways to evaluate your loan advisor choice is by looking at their reputation. But relying on a loan advisor’s reputation isn’t enough to ensure they can provide you with the right loan that fits your financial needs. You should consider a number of characteristics, as well as whether the loan advisor has an area of expertise that aligns with your financial goals.

Why Hire a Loan Advisor?

Mortgage advisors review your financial capacity for approval on a home loan. Underwriting a loan is a complex process that depends on numerous local, state, and federal factors and regulations. Choosing an experienced and empathetic loan advisor can streamline your home buying process and help you choose the right loan for your needs.

Questions to Ask Your Loan Advisor

What Is Your Fee?

The price for your loan advisor will likely be embedded in the price of your mortgage. Despite this fact, you should still ask how much your loan advisor takes from the mortgage. Though there isn’t as much variation in their rates as there used to be, you should see if the loan advisor is comfortable with explaining their fees and the relationship they have with interest rates.

What Sort of Experience Do You Have?

One of the most important determinants of your loan advisor is asking about their mortgage background. You should ask how many loans the advisor has underwritten in the past year. It’s also common for loan advisors to switch companies frequently. You should research how long your loan advisor’s company has been in business. Check to see if they have any complaints with the Better Business Bureau as well.

What to Look for In Your Loan Advisor Do You Have National Experience? Specialized Experience?

Look for a loan officer who matches your loan preferences. For example, if you are looking for a federally-backed loan, such as an FHA loan, you should consult a loan advisor with experience with FHA loans. Criteria and certifications vary depending on the lender, so it’s advisable to ask about the loan advisor’s qualifications and background.

If you’re interested in a property elsewhere in the United States, choosing a loan advisor with nationwide experience is imperative. These loan advisors will have knowledge surrounding local market conditions and loan stipulations. They will also be able to serve you in your current location, which will help you avoid having to travel to receive loan advice.

Reasons to Choose a Loan Advisor Before a Real Estate Agent

Choosing a loan advisor before a real estate agent gives you the following advantages:

  • Loan advisors will inform you how much you stand to spend on your mortgage. This helps with your home-buying planning process because you can narrow your home search to realistic options.
  • Loan advisors will have close ties with the best realtors in your area. They will be able to recommend a reputable option for your real estate agent.
  • Loan advisors aren’t selling a particular home, which means you will receive unbiased information.
Define What Type of Loan You Need

Reputable loan advisors will be honest about their area of expertise. If they aren’t experienced with the type of loan you’re looking for, they will recommend an expert in the type of loan you’re interested in. Your loan advisor should listen attentively to your needs and identify the type of loan you want, as well as the one that fits your financial situation best. The most reputable loan advisors will offer you loan options and empower you with choices.

If you are a first-time homebuyer, loan advisors will recommend first-time homebuyer loans. If you need a low down payment, they might recommend an FHA loan. If you are looking for a luxury or investment property, a jumbo loan might fit your needs best. If your loan advisors aren’t versed in these areas, they will be upfront and honest with you.

What to Look for In Your Loan Advisor Characteristics of the Right Loan Advisor


Loan advisors shouldn’t push their own agenda. The best loan advisors understand you have unique plans. You should choose a loan officer who takes the time to understand your current living preferences as well as your financial situation. They should understand your financial status and what you’re looking for from your home loan.


Your loan officer should be able to clearly explain all of the responsibilities you will take on as a result of your mortgage choice. You shouldn’t be confused by their explanation or overwhelmed by whether or not they are giving you the full scope of the information.


Your loan advisors shouldn’t push you to make a brash decision. They should feel comfortable with their advice and respect the time you take to decide. Choosing a mortgage is one of the most important decisions you will make in your life. You should feel comfortable taking as much time as you need.


Qualified loan advisors understand the importance of their role. They will streamline your home buying process and alleviate your stress while keeping you focused. You shouldn’t feel like you have to track your loan advisor down or as though they are giving preference to other borrowers.

Underrated Skills In Loan Advisors

Reading Tax Returns

One of the underrated skills a loan advisor should have is the ability to easily read and evaluate tax returns. Qualifying income on tax returns can be difficult to evaluate and loan advisors can make mistakes, resulting in a loan denial or additional stipulations. If they do not obtain the necessary documentation from you, you might have to scramble at the end of the process to provide this information.

Tech Savviness

Another underrated skill in loan advisors is the ability to operate and utilize technology. They will also be able to clearly instruct you on how to use that technology. Much of the loan advisor’s job boils down to operating complex software programs. If your loan advisor does not have these skills, your loan process can quickly become complicated and delayed.


What to Look for In Your Loan Advisor

Your loan advisor should have nationwide experience and be able to guide you to the loan that fits your needs best. They should be attentive, patient, motivated, and communicative.

You should feel like they clearly explain the loan process without overwhelming you or making you feel unheard. Contrary to what many people believe, the position of loan advisor should have people skills. It is as much a people-oriented position as a financial position. Image Credits:
Image 2: Photo by Christina Morillo on StockSnap

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Any facts, figures or references stated here are made by the author & don't reflect the endorsement of iU at all times unless otherwise drafted by official staff at iU. This article was first published here on 5th September 2022.

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