Being in the industry for as long as I have, I’ve seen loan officers come and loan officers go. The good ones last a long time and the not-so-good ones, well, they go find other work. But knowing a few things upfront will help you find the right loan officer for your situation.
First, loan officers tend to gravitate to a set of loans they’re comfortable with. You might find someone that’s very experienced with VA loans but not so much with USDA programs. You’ll find marketing pieces from different loan officers that tout how many different types of loans they have but the truth is just a few of them are actually used on a regular basis.
Get referrals from family and friends but also pay attention to a list your agent provides you. When a real estate agent refers a loan officer it’s not for the purpose of any type of compensation but instead when an agent provides a list of good loan officers it's because those loan officers have earned that designation. Agents aren’t really concerned with rates and programs but their concern with a loan officer is whether or not the deal blows up at the very last minute. Before you speak with a loan officer referred to you by an agent, you know those referrals speak confidence. If a loan officer blows up deals at the last minute, that loan officer will soon see his pipeline begin to fade. Not just from that one agent, but from the agent’s entire office.
Also, you need to know if the loan officer is a mortgage banker or mortgage broker. There’s really not a whole lot of differences here. Brokers work with different lenders but mortgage bankers also work with different lenders in which they sell loans to. The most important element here is finding out how long a loan officer has been in the business. While every loan officer starts out somewhere, experience plays an important part. Very important. Knowing in advance the experience level of the loan officer will go a long way in ensuring you have a smooth closing.
Finally, mortgage rates from one lender to the next will be very similar so what’s most important is working with someone you’re comfortable with. It’s the comfort level you’re seeking when you first start out looking for a loan officer to work with.
