There’s a new survey out by ClosingCorp telling us that last year more than 50% of lender’s loan estimates to borrowers had to be revised before the close of escrow. Buyers complained that closing costs and fees were adjusted due to something about them or the loan.
Hold the phone: That shouldn’t happen. We aren’t giving you a Loan Estimate until we’ve taken your loan application. You’ve told us everything we need to know so we can place your loan. There’s no reason for a surprise after that.
Unless … Your lender is inexperienced or careless. How can you be sure you are working with someone who will accurately quote details about your mortgage? Be a prudent consumer and check the NMLS.
The Nationwide Mortgage Licensing System was created to show consumers who they are working with in lending. Bankers are just required to “register” with the system, but mortgage brokers have to “license” in with stricter education mandates. Every Mortgage Loan Originator is assigned an identifying number on all printed materials. You’ll find the landing page when you google “NMLS consumer”.
The most interesting reading can be found under “self-reported employment history”. You’ll be able to see what your loan officer has been up to for the last 15 years. Pay special attention to the column “financial services?” to see if they have lending experience.
Here are some examples. Check out my NMLS ID#235051. You’ll see that I’ve been with my current broker since 2000. Compare that to an online lender found by one of my clients. Said lender has had twelve jobs since 2004, and has spent three years with no job at all. And yet another example will show you someone who has been in the food industry until recently registering with the system.
You’re giving your personal financial details, and trusting your home, to the person you choose to write your home loan. Mortgage finance is an art as much as a science, so please do some background work and choose carefully when it comes to arranging for your home loan.
Tammy Engel is your local Mortgage Advisor and has been working for your best interest since 1990. Contact her at (661) 822-7325 for help with purchase, refinance, and reverse mortgage.