How to Find a Trusted Lender

The most common question from first-time homebuyers is “What’s the Process?”

Depending on the experience and sincerity of your real estate agent and lender, the process can look different. Real estate and lending professionals who are truly looking out for their clients will spend more time up front and educate their clients about each step of the process. Purchasing real estate can be one of the largest expenses that you could make in your life. Having the right agent and lender help can minimize stress and cost along the way. The first step is to find a trusted lender.

The Process:

Find a trusted lender > Find a trusted real estate agent > Get Preapproved > Begin the home search > Make offer > Negotiate > Strike a deal > Loan Processing > Loan Underwriting > Loan closing > Move in!

How to Find a Trusted Lender

Unless purchasing a home with cash is a viable option, the only other way to buy a home is through financing. One of the first questions that real estate agents will ask is if you have a Pre-Approval Letter. The Pre-Approval Letter implies to a real estate agent that you have had a lender verify that you are qualified for home loan financing. Having a legitimate Pre-Approval Letter in your hands before speaking with a real estate agent demonstrates to them that you are serious AND qualified to begin the home search. This is why finding a trusted lender is typically the first step in the home-buying process.

How do I find a trusted lender? Look for proof of service, local to you, and amount of experience.

Proven Customer Service

The home-buying process can be stressful enough. No one wants poor service and/or communication in addition to being stressed. Experienced professionals should have references from their previous clients. The number of reviews as well as the average rating should provide some transparency about the lender’s service habits.

While expecting a 100% customer satisfaction rating may be unrealistic, there are loan officers with satisfaction ratings of 95% or higher. Ask your lender for a copy of their client surveys and ratings. If they are all glowing reviews, you may not have been provided the full reference list.

If the lender is not willing or able to share references, you can search for their name on Google reviews.

Go Local

Lenders who live and work in the area in which you’re buying understand the market better and have relationships with local agents and know which agents may be a better fit for you and your family.

A common mistake made by homebuyers when looking for a lender is searching online. While online lenders may be legitimate, they may not be local, their fees may be excessive, and their service may not be comparable to local lenders for various reasons.

Get Experience

Look at the loan officer’s NMLS ID number. Mortgage lenders are federally required to have a National Mortgage License Identification number that is tracked by the National Mortgage Licensing System (NMLS). Consumers can search for the loan officer’s NMLS ID.

Lenders are required to display their NMLS ID number in their advertising, emails, and social media. To search for the NMLS ID number, simply visit NMLS Consumer Access at https://www.nmlsconsumeraccess.org/. After entering the ID number, it will confirm if there is a match.

From there, you can click on the match and view the loan officer's history.

The ID number that is issued to loan officers can range to upwards of 7 digits. The lower the number, the longer the loan officer has been licensed by the NMLS. My personal NMLS ID # 397987 was issued in 2009. If your loan officer has a NMLS ID of 2843225, then this means that they would have been issued the ID more recently and therefore, may have less experience as a lender.

If you are thinking about buying a home and would like more information about lenders or real estate agents in your area, contact me any time.

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Terry has been in the mortgage and real estate industry for more than a decade. Specializing in residential mortgages including conventional, FHA, VA home loans, and new construction, Terry has helped more than 10,000 clients start the home buying process across America.

"After becoming a teenage father, dropping out of high school, and living the reality of being homeless, I made the decision to join the US Marine Corps so that I could help preserve our freedom and provide for my family.

After nearly 10 years of serving, I wanted to return home and help Americans live the dream of owning a piece of the land that so many have fought for. That dream came true for me."

Terry's experience gained from helping his clients realize the American dream of homeownership allows him to help people leverage buying real estate in a way that helps build future wealth.

Terry Roberts, USMC Veteran | Sr. Mortgage Banker NMLS 397987 | www.TerryRoberts.com | Bell Bank Mortgage | Equal Housing Lender