Determine Whether Your Loan Officer Is Reputable
By: Diane Tuman, Zillow Content Manager | May 14, 2008
Today’s Wiki Wednesday Feature: Determine Whether Your Loan Officer is Reputable
Once you actually find a home to buy, the last thing you have time and energy to vet is whether your loan officer is reputable. Just show me the money, honey and let’s get on with it.
It turns out, however, that this is the place and time in the home buying process where you need to be v-e-e-r-r-y careful. In today’s Wiki Wednesday feature article, “Determine Whether Your Loan Officer is Reputable,” mortgage planner William Doom offers three things to look for when scouting around for lenders and in each case, if you’re not getting straight answers, you should walk. They all have a similar theme, which is trust.
1. Look for a Mortgage Planner whose values are focused on helping individuals achieve their financial goals in both the fastest and the safest way possible.
2. A responsible Mortgage Planner will present you with financial information that goes beyond the point of the transaction, and will illustrate the total cost of the loan over time.
3. If your loan officer is advising you on issues other than mortgages, you could be working with someone who is compromising your best interests.
Obviously, not all lenders are created alike and it’s up to you to find someone who you trust and who can give you a great rate with outstanding customer service. And, if they balk at any questions asked, you need to say bye-bye. Lenders in the Zillow Mortgage Marketplace are rated according to the quality of the loan quote, as well as customer service (screenshot below). If you need a loan quote, the Mortgage Marketplace is super transparent for borrowers and if you make a loan request, you don’t even have to provide your name, address, phone or Social Security number! There’s no commitment and no personal information to reveal. The Marketplace is similar to Craigslist in concept where you post information anonymously — no one knows who you are. We think that’s a nice way to shop for loans.
Ed: Wiki Wednesdays is a weekly feature that highlights helpful or interesting articles from the Real Estate Guide.
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Comments
7 Comments so far
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Rhonda Porter on May 15, 2008 11:26 am
Diane, great post. Picking a LO by rate alone can be a huge mistake. I’ve been dealing with two borrowers (from other LO’s) who were quoted low rates that they actually thought they locked only to find out that their LO was either incompetent or flat out lying. The consumer has lost time, possible lower rates and has gained more frustrations than they wanted.
Landflip on May 15, 2008 12:02 pm
You are right…when searching for a reputable loan officer it is important to go with someone that you feel as though you can trust. There are some out there that just want to get your busy and have no clue what they are doing. I agree that it is important to be cautious and not jump at the first low rate!
Richard Dale-mesaros on May 15, 2008 9:38 pm
Here, here Diane!
Another thing I always look for, is a loan officer who closes at least 100 loans/year, with a similar type of clients to your subject client.
It’s interesting that recently, certain loan officers who work for the regular banks (ie:Bank of america) are in a better position to offer creative programs than the mortgage brokers, who seemed to be the more creative ones over the last couple of years.
Yours with boundless enthusiasm,
Richard
Chief Deal Weaver
http://www.BlackWidowNetwork.com
Hitting the Links | Redfin Boston Sweet Digs on May 17, 2008 3:10 am
[...] Do yourself a favor: find a reputable Loan Officer. [Zillow Blog] [...]
Jim on May 17, 2008 9:55 am
Wow. All of those real estate seminars gone to waste. I feel for you. I work at McDonalds and my salary is $1400/month and I rented an apartment which was $2000/month. Now I can’t afford to pay. I wish I took a real estate course too.
Richard Dale-Mesaros on May 17, 2008 5:12 pm
Hi Jim,
I feel for you; it’s unfortunate that your income is below your rent. If you do want to increase your income via real estate, you should check out your local real estate investor’s association. This is a GREAT place to learn the techniques we use - the meetings typically cost around $15.00 and they have speakers each month, who teach you how to creatively make money in real estate. There’s a directory of these groups at our website, or any one of the other real estate investor websites out there. Many of these techniques actually require no money on your part… interesting stuff.
Hope this helps!
Richard
Chief Deal Weaver
http://www.BlackWidowNetwork.com
Craig Ballhagen on October 15, 2009 6:54 am
The “great low rate” means nothing if the loan is not locked and the deal never closes. Borrowers need to stop chasing ghosts and establish a lasting relationship with a qualified professional