Choosing a Mortgage Loan Officer: 10 Questions to Ask
Not all mortgage loans are the same and neither are all mortgage loan officers. That’s why it is important to ask the following 10 questions before choosing a mortgage loan officer for your home purchase.
Question 1: Are you licensed?
It is important that you work with a mortgage loan officer that is licensed with the National Mortgage Licensing System and Registry. You can ask for their registration number and check on them at the NMLS Consumer Access database to verify.
Question 2: How long have you been a mortgage loan officer?
Although a mortgage loan officer can be good and new, it is still wise to know how long they have been in the business. Loan officers that have been creating loans for years know many of the ins and outs of the process. However, new officers may understand more recent changes and be willing to give you more attention.
Question 3: How active are you currently?
Find out how many loans they have underwritten in the past year. You want an mortgage loan officer that has been actively writing loans so that you know they are keeping abreast of the latest requirements.
Question 4: What loans do you specialize in?
Loan officers often specialize in specific kinds of loans such as non-conforming, Jumbo, FHA, or VA. They may also work more closely with those that are self-employed or have credit issues. Make sure that the mortgage loan officer you consider can help you with your specialized needs.
Question 5: What do you charge for loan origination?
Loan origination fees vary from lender to lender. Some brokers work for a variety of lenders, so be sure to know the fee for the loan they are suggesting to you.
Question 6: How many lenders do you work with?
Having many lenders available can be valuable if you need a specialized loan or if the loan process becomes difficult. This gives your mortgage loan officer access to a wide variety of loans.
Question 7: Do you have a strong network I can tap into?
As you work towards closing your home, the mortgage loan officer is not the only person you will need to consult. Having someone with a good working relationship with closing attorneys and appraisers can help keep the closing process moving forward.
Question 8: Are you available beyond the 9 to 5 working hours?
You should be able to reach your mortgage loan officer whenever you have an issue. Although you should try to keep your questions to business hours, having their cell phone number and email is essential in case a problem occurs. If they will not provide you with their contact information, choose another mortgage loan officer.
Question 9: Do you have any scheduled leave time in the next few months?
If your mortgage loan officer is going to be gone for any period of time during the loan process, be sure that there is a way to handle their absence. Be sure to speak with those taking over so that you know who they are, and they know you.
Question 10: How do you keep me updated about my loan status?
Your mortgage loan officer should update you on a regular basis throughout the lengthy loan process. As things proceed, they will often need further information from you to keep the process moving forward.
In addition to these answers, see what you think of their personality. Do you think you will get along? Do they explain things so that you can understand them? If you like their answers and feel good about them as you speak, then you’ve found yourself a loan officer. If you’d like help finding a mortgage loan officer, we’d be happy to give you the names of those we’ve worked with in the past.