Choosing a mortgage lender is not an easy task and should never be based solely on the lowest rate.
Obtaining a low rate home loan is one of the rarities of the 21st century. Loan programs and loan officers have a confusing web of processes that entrap you in years of interest, fees and debt. Here are ten tips in choosing a mortgage lender who will not rob you of your life savings.
- Utilize the National Mortgage Licensing System & Registry (NMLS) to look up information on any mortgage lender for free throughout the USA. Research is the most important step in choosing a mortgage lender to ensure you will not be scammed.
- Confirm that your mortgage lender is licensed before giving them any personal information. If your potential lender is not found in the NMLS, they may be scamming you for your money.
- Try to find a mortgage lender who is licensed in all three jurisdictions. If you decide to work a lender who is licensed in only one jurisdiction, and then find a home in a separate jurisdiction, you may have to begin the loan process from the start.
- Check if your mortgage lender has been involved in any state disciplinary proceedings. A high-end lender should have little to none disciplinary proceedings. This will also let you see how long they have been in the business, and what companies they have worked under.
- Utilize local lenders who will use local experts to process, approve, and close your loan. This will improve your chances of your loan being approved.
- Contact the Department of Insurance, Securities and Banking to verify your lenders’ license. This is another resource that can be utilized in checking your lender’s validity.
- Contact the DISB to see if your loan officer has any complaints registered against them.
- Seek housing counseling through nonprofit legal aid organizations to help with the loan transaction if you cannot afford professional help.
- Check if your lender has CPA or MBA credentials. This represents the highest form of education that can be obtained in mortgage lending.
Ask around with friends to see if they like their mortgage lender. Sometimes word of mouth from a trusted source can be some of your strongest advice.