Mortgage lenders and bankers are a critical part of most real estate transactions.
Your lender will work with you and your real estate broker to help you get to closing. Loan officers typically work for banks, credit unions and other financial institutions. Because of new regulations, loan officers that originate residential loans must obtain NMLS credentials which include a background check, license education, a credit check, and a national exam.
The Nationwide Mortgage Licensing System (NMLS) is the legal system of record for licensing in all participating states, the District of Columbia and U.S. Territories. In these jurisdictions, NMLS is the official and sole system for companies and individuals seeking to apply for, amend, renew and surrender licenses managed in the NMLS on behalf of the jurisdiction’s governmental agencies.
The initial meeting with a loan officer is to assess your needs and to determine your creditworthiness for a loan.
Once you begin your consultation with a mortgage lender or banker,
he or she can take the information you provide and use it to determine the best loan product to suit your borrowing needs.
If you’d like a list of everything a lender will request or require to provide your loan, it’s here Buying a home – Lender Checklist
You should be certain to discuss the following items with your loan officer
- What are the costs associated with the loan?
- How he or she will be paid.
- What are closing costs?
- Is there a prepayment penalty on this loan?
- How long does it normally takes to recieve a “clear to close” from an underwriter with the type of loan product the lender is suggesting to you.
- What is the minimum downpayment for the loan?
- What could delay the approval of the loan?
- Does the lender see issues that should be addressed prior to applying for the loan?
- What are the current interest rates?
- How do points work and how much do they cost?
- Can they provide an itemized breakdown of the APR (annual percentage rate), points and origination fees? You must have this if you will be shopping lenders.
The start of your home buying process should begin with an assessment of your finances followed by a visit to your bank.
I usually suggest clients talk to the mortgage lender at their bank because there is already a relationship.
If you’d like a referral I suggest one of the lenders here. These loan officers have been given excellent reviews by former clients.
Because you are making a large and important purchase, you should seek referrals from your friends, family and other trusted sources and continue to ask questions until you are comfortable with your decision. It is not uncommon for a client to talk to 3-4 lenders before making the decision of who to work with. If there are problems later in the transaction it often helps to have talked to more than one lender.
