Ned Johansen is a loan officer/broker, he has enjoyed this profession for over twenty-three years. Mr. Johansen is currently employed through Compass Lending Solutions, and has been with this company for about ten years. He enjoys the challenge of helping families acquire the dream of owning their own home. He says it is exhilarating to see someone get into their first home. While personally working with Mr. Johansen he gave encouraging methods of improving personal financial stability and also helped understand the financing process.
2. What statements do you use within your position?
On the loan application side there are multiple options for determining the financial ability of the applicant. Ned, shared that the paper work he uses to determine the financial loan an applicant is capable to pay back is similar to a balance sheet. Income statements of the customer is also used in determining the ability to meet financial obligations.
3. What method do you use to analyze the customers financial situation?
It is important that the loan officer pays attention to the assets and liabilities the customer maintains in their financial portfolio. This is often determined by comparing the debt to income ratio. Most loan agencies require the debt to income ratio to stay under 43% however Mr. Johansen encourages that the applicant maintains a number that is much lower. Taking a look at the applicant’s assets allows the loan officer to determine if they have a “back-up” plan for repaying the loan during financial difficulty. When analyzing the assets it is important to understand the liquid assets, and how accessible they would become.
4. When you a...
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...to determine the best financial institution for each applicant. What might be the loan for one customer, isn’t the same for another. One such situation Mr. Johansen explained to me regarding the variation of interest rates. Banks can offer a variation of interest rates due to the applicant’s ability to pay for a lower rate. The applicant will want to keep in mind the time frame they expect to stay in the home being purchased, this will also help them to determine if it is logical to pay for a lower interest rate.
Mr. Johansen was informative in helping me understand the loan application and the tools used to determine the financial situation of a customer. With such knowledge I am able to make more informative decisions about our family’s financial future. It is imperative that each individual understands their financial status before applying for a mortgage loan.
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