Buying a home is one of the most significant financial decisions most people will make. If you don’t have the full amount in cash, like most homebuyers, you’ll need to borrow money from a lender—such as a bank or credit union. However, borrowing “other people’s money” means following their rules and guidelines, which can often feel overwhelming.

Many borrowers find themselves confused by the complex requirements and documents lenders demand. To add to the confusion, they encounter a series of professionals—loan officers, loan processors, underwriters, closers—each playing different roles. It can be frustrating when multiple professionals request the same documents or when information isn’t communicated clearly. Who hasn’t wondered, “Why am I being asked for bank statements I already submitted?” or “Why didn’t my loan officer mention this three weeks ago?”

In this article, we’ll focus on two key players in the mortgage process—the Loan Officer and the Underwriter—and explain why the loan officer should be seen as your ally throughout this journey.

Loan Officers: Your Guide Through the Mortgage Maze

The Loan Officer, often referred to as a Mortgage Loan Originator (MLO), is usually the first professional you encounter. Whether you were referred by a friend or noticed their name on a local billboard, the MLO is your primary point of contact during the early stages of securing your mortgage.

What Does an MLO Do?

• Assists with the Loan Application: The MLO helps you complete the loan application and collect all the necessary documents.
• Structures Your Loan: Based on your financial profile, the MLO structures a loan file designed to meet lender requirements and secure approval.
• Estimates Costs: They provide estimates of borrowing costs and projected monthly payments.
• Acts as Your Main Point of Contact: Throughout the process, the MLO communicates with you, the lender, and other key players involved in your transaction.

Why the MLO is Important

The MLO is essentially the face of the lender. They take time to understand your financial situation by asking detailed questions, which helps them match you with the best loan product based on your needs and objectives.

An experienced MLO is knowledgeable about various loan guidelines, including those from Fannie Mae, Freddie Mac, FHA, VA, and USDA. They’re also well-versed in different loan programs that might suit your financial situation.

Most MLOs work on commission, meaning they only get paid when your loan closes. This structure motivates them to guide you carefully through the process, ensuring your loan has the best chance of being approved.

Underwriters: The Gatekeepers of Loan Approval

While the MLO is your go-to person, the Underwriter works behind the scenes, playing a crucial role in deciding whether your loan gets approved.

What Does an Underwriter Do?

• Analyzes Financial Risk: The underwriter reviews your credit report, income, employment history, and other financial documents to assess your creditworthiness.
• Applies Lender Guidelines: They ensure that your loan application meets the lender’s criteria and complies with regulations.
• Makes the Final Decision: The underwriter ultimately approves, suspends, or denies your loan. Often, approvals come with conditions that must be met before closing.

Key Differences Between MLOs and Underwriters

• No Direct Contact: Unlike MLOs, underwriters don’t interact directly with borrowers. Instead, they communicate with the MLO when they need more information or clarification.

An underwriter and a MLO don’t usually work in the same lending company, but if they do, they maintain their own independence in their lines of work.

• Strict Adherence to Guidelines: While the MLO works with you to structure the loan, the underwriter ensures the loan complies with agency guidelines. They don’t choose the loan product—that’s the MLO’s job. Instead, they verify that the selected product meets all requirements.
• Attention to Detail: Underwriters “turn over every rock,” investigating anything that might pose a risk to the lender. They’ll question unusual deposits, inconsistencies in documents, and anything that raises red flags.

Why the Loan Officer is Your Best Ally

While the underwriter has the final say, your loan officer is the one who can help you navigate potential roadblocks before they become major issues. A skilled MLO:

• Anticipates Underwriter Questions: They review your documents thoroughly and spot potential problems before submission.

A good MLO is not afraid to ask questions, no matter how uncomfortable they are, or ask for supporting documents from their borrower.  They are trained to read the bank statements and credit reports and to question any anomalies in these documents.  They ask tough questions because while the file is still under their control, they still can “fix” issues that underwriters will certainly ask later on.

• Helps You Prepare: Whether it’s drafting an explanation letter for a large deposit or choosing which bank statements to submit, the MLO ensures your file is as clean as possible before it reaches the underwriter.
• Keeps the Process Moving Smoothly: The MLO acts as a buffer between you and the underwriter, helping to streamline communication and avoid delays.

The Bottom Line: Teamwork Ensures Success

A home loan is a team effort, but understanding the distinct roles of each professional helps you navigate the process more confidently. Your loan officer is your guide, advocate, and main point of contact, while the underwriter ensures that your loan meets all guidelines and reduces risk for the lender.

To avoid surprises and unnecessary delays, cooperate closely with your loan officer. Provide requested documents promptly and trust their guidance. Remember, their goal is to get your loan closed successfully—because when you win, they win too.

By understanding these roles, you can approach the mortgage process with clarity and confidence, ultimately bringing you one step closer to your dream home.