Tucson Real Estate News

Buyer beware. Be informed when selecting a Lender. Having just watched my clients go through the most miserable loan process I have ever witnessed, I wouldn’t wish the ordeal on my worst enemy. Before giving the Loan Officer your information, insist on him or her answering the following:

Ask for his or her NMLS (Nationwide Mortgage Licensing System) number. Not the institutions number, the individual’s number. There are protections in place for you as a consumer when working with a licensed Loan Officer. There are standards that they are held to for your protection; background check, fingerprinting, 32 hours of Federal Regulations, 8 hours of State Regulations, 8 hours of Ethics, then they have to pass a test. The ones who fail, where do they go? Large Institutions aren’t required to have their Loan Officers get licensing; this should be a red flag to you as a consumer. Why aren’t they required to comply with consumer protection while others outside the large institutions are? Why would you want to work with someone who hasn’t gone through the hours of training licensed mortgage originators must go through? It’s kinda like getting surgery from an unlicensed doctor because he read some medical books and the hospital hired him.

Will you be my/our primary contact throughout the entire process of the loan? Horror story, my clients started with a lender who did a poor job. Once the loan got approval to move forward his response was, “You’ll have to ask the Processor.” Never had I heard such abandonment. The Loan Officer should be the point of contact for all information related to your loan. If the answer is “No” you may want to consider hanging up and moving to the next Loan Officer to interview from a different Lender.

Where is your Processor located? If the Loan Officer is in Tucson Arizona, and the Processor is in Jacksonville Florida. Ask yourself, what does that Processor know about Arizona purchase and lending requirements? If the Loan Offices says the Processor is in the same building as he or she that is a good sign to you as a buyer.

Where is your Underwriter? If the Loan Officer is in Arizona, the Processor is in Florida, is the Underwriter in Bangladesh? It is good news to hear that the Underwriter is only a few doors down. A good Loan Officer will run your loan by the Underwriter early in the transaction. This will reduce the need for additional paperwork or proof toward the end that can cause delays or denial of a loan.

Your REALTOR® has experience with a variety of Loan Officers and Lenders. Asking your REALTOR® who he or she has had good experience with is a good idea. It can save you lots of frustration. As a REALTOR® I cringe at the name of certain Lenders. The horror stories from past clients with certain Lenders are long. I cannot tell my clients who to go to, I can tell them of past experience with particular lenders. I can give them contact information for a reliable Loan Officer who has performed well for clients in the past. Picking the right Lender is critical to your purchasing the home of your dreams. You can go out on your own, which is OK if you know what to expect, but Buyer beware there are huge differences your REALTOR® can help you avoid.  Being smart about it and asking the right questions will make home buying pleasurable and you can leave the Tylenol on the store counter.

While you’re here, feel free to play around with some of the mortgage calculators under the Applying For A Loan tab on the left. They’re there for your benefit.

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