What loan officers, processors, and underwriters do for you

Architects. Builders. Flooring specialists, Movers. Landscapers. Loan Officers. And more! There are so many people to keep track of and communicate with when you’re building a house. Get to know what each member of your mortgage team does to help you get the loan you need:

• Your Loan Officer is the person you’ll have the most contact with, starting from the very beginning when they help you choose which loan is best suited to your needs. At KBHS, we have loan officers who understand the unique details that accompany a relocation.

In the “old days,” your loan officer would work with you to complete the loan application and gather the proper paper documentation before passing it on to the Loan Processor. Although most (or all) of that work is now done online or with our KBHS Digital platform, our loan officers are still there to answer any questions you have and to be a source of support. We believe in the power of relationships that support technology, instead of replacing it.

• The Loan Processor organizes and handles all “paperwork” needed for the underwriter. Once again, most of this is now digital content, but the job is still the same. They look at your credit report to make sure that details are available to clarify any potential issues, such as errors or late payments.

They may request additional information, which could come to you through KBHS Digital or by contacting you directly. (At the end of this article, we talk briefly about legitimate calls you’ll receive throughout the process versus potential external scams.) The processor also keeps track of deadlines to avoid missing any critical dates. Dates and details are extra important when it comes to building a home.

• The Underwriter is responsible for determining if you meet the loan qualifications after receiving the documentation from the processor. They look at the 3 Cs, which are: Credit, Capacity, and Collateral.

Credit is how well you’ve managed money you’ve borrowed in the past, since it can be a predictor of how you’ll handle credit in the future. Capacity evaluates if you have the ability to pay the mortgage based on your income and expenses. The formula is based on your debt-to-income ratio (DTI). Collateral is the value of assets (including the estimated market value of your new home, investments, etc.) that provides a guarantee that the loan will be repaid according to the mortgage contract.

Protect yourself from financial fraudsters

Although the majority of our communication will come through KBHS Digital, you might still get a call or email from a KBHS processor. Even though it’s probably legitimate, you can call your loan officer to make sure it truly is someone from KBHS, or you can tell the caller that you’ll call them back. You should use the official contact information on our website or that you’ve received directly from a member of our team.

Unfortunately, there are some pretty sophisticated scams that prey on homebuyers. One of the biggest is real estate wire fraud, which typically occurs as you’re about to cross the finish line and are excited about wrapping up the mortgage process. If your instincts tell you something isn’t quite right, you can always reach out to your loan officer to make sure the request is legitimate.

We look forward to being a part of your home construction experience! Call us today to learn how we partner with our clients.