A Look Behind The Curtain: How To Choose a Loan & Lender
How to choose a loan and in today’s economic environment can be a difficult and daunting task. A recent article in The Washington Post reports that, “The level of lender scrutiny and the maze of loan programs has never been more complex or illogical.”
So how do you make the process easier? Selecting the right mortgage loan officer will provide you with a qualified guide to lead you through the intricate details of how to choose a loan. But first you must find a qualified mortgage loan officer.
To do so, initially start by checking out the National Mortgage Licensing System & Registry (NMLS). This site provides you with access to administrative and license information for state regulated mortgage lenders across the country. This site is also free of charge and gives you detailed information about the mortgage lender you’re considering.
Before offering any personal financial information to your lender, double check that they are in fact licensed. The NMLS site will also let you know if the loan officer you’re looking into has been the subject of any state disciplinary proceedings, as well as how long your loan officer has been in the business and what companies he or she has worked for.
However, not all mortgage lenders are regulated at the state level. Commercial banks that have the word “National” in their name and savings banks and savings and loan associations that have the word “Federal” in their name are organized under and subject to federal law. These Federal institutions are regulated by the Office of the Comptroller of the Currency. To verify these lenders you can visit www.helpwithmybank.gov or call (800) 613-6743. In addition, inquiries for Federally regulated credit unions should be directed to the National Credit Union Administration www.ncua.gov or by phone at (800) 755-1030.
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