There are many different kinds of loan officers. Most of the time, they focus on either mortgage loans, business loans, or consumer loans. For this article, I'll only be talking to mortgage loan officers. People like these could be your best friends or your worst enemies. They want your loan to go through. They also want you to find your dream home. So at the start of the process of buying a home, when they give you money, they seem like the best friend you could ever have. But this relationship can go very wrong if you and your loan officer don't balance your wants and needs and figure out how to fit them into your budget in a way that lets you plan for the worst.
This is what I just said in plain English. If a loan officer gives you more money for a house than you can really afford to pay back, they aren't really being the friend you thought they were. When we're looking for the perfect home, we all get a little starry-eyed, and I can't think of many people who have ever looked at a really nice house and said, "You know, that's just too nice for us. We don't deserve all that." I know I haven't said it before. Everyone wants to get the best house for their money. We want our kids to go to the best schools and play with their friends in a really nice, big backyard. In reality, what we want and what we can afford are often two completely different things.
Unfortunately, a loan officer can suggest things like interest-only mortgages, mortgages with changing interest rates, and many other things that will lead us to financial ruin in the long run. All of this isn't because I think all loan officers are bad, or even because I think most of them are. Instead, I'm telling you to make sure you know what you're getting into when you get a loan. Choose your loan officer wisely, ask questions, get references, and make sure you read the fine print.
Now I'll talk about my best friend. If you find a loan officer who tells you the truth, you've found a great friend, and you should do your best to keep in touch with them for the next big purchase you want to make. You see, if you find a loan officer like the one I talked about above, you've found someone who can help you with your money. Someone who can help you decide if you are ready to move up or if you should stay where you are for a little while longer. He or she will also tell you that even though you might be approved for XYZ dollars, it might not be a good idea to put all of it into your home.
In the end, unexpected things happen every day. A good loan officer can help make sure you have the tools you need to be ready. Even though you might think he or she is your worst enemy at the time, a good loan officer will tell you strongly not to go into debt to buy a house you can't really afford.
