How to choose a loan officer in New Hampshire

What does a loan officer do?

A mortgage loan officer, also called a mortgage loan originator, helps you choose a loan and apply for it. A good one looks at your income, debts, credit and savings, explains which programs could fit, prepares your pre-approval, and keeps the file moving with the underwriter, the appraiser, your agent and the closing team until you have the keys.

Every loan officer who takes mortgage applications must be licensed or registered through the Nationwide Multistate Licensing System (NMLS). Loan officers at mortgage companies and brokers, like Tom, hold a state license for each state where they work.

Should I use a mortgage broker or a bank?

A loan officer at a bank or credit union offers that institution's own programs. A loan officer at a mortgage broker can compare programs from a number of lenders and help you choose one. Neither is right for everyone: a bank you already use may have a program that fits, and a broker can be useful when your situation calls for options, such as self-employed income, a condo, a multi-family or a small down payment.

Elite Mortgage Group is a mortgage broker that works with 45 lenders. The broker vs. bank guide explains the differences in more detail.

How do I check a loan officer's license?

It takes about two minutes on NMLS Consumer Access, the free public lookup run by the state regulators:

1. Ask for the loan officer's NMLS number. It should be on their website, email signature and business card.
2. Go to nmlsconsumeraccess.org and search by that number or by name.
3. Check that the record shows an active license in New Hampshire, the company they work for now, and any regulatory actions listed.
4. Look up the company too. Every mortgage company has its own NMLS number.

For example, Tom's record is NMLS #2748687, and Elite Mortgage Group's company record is NMLS #2502308. You can check Tom's license on NMLS Consumer Access.

What should I ask a loan officer before I apply?

These ten questions tell you a lot in one short call:

1. Are you licensed in New Hampshire, and what's your NMLS number?
2. Do you work for a bank, a credit union or a broker, and how many lenders can you compare?
3. Which loan programs would you look at for me, and why?
4. What would my full monthly payment be, with NH property taxes, insurance and any mortgage insuranceMortgage insurance (PMI or MIP) Insurance that protects the lender on many loans with a smaller down payment. It's added to your payment and can often be removed later. See the full glossary×?
5. About how much cash would I need at closing, and what does that include?
6. Can I get a Loan EstimateLoan Estimate A standard three-page form you receive within three business days of applying that shows your estimated rate, payment and costs. See the full glossary× so I can compare offers side by side?
7. What do you need from me for a pre-approval, and when would you pull my credit?
8. Who do I contact during the process, and how quickly do you usually reply?
9. Will you take my real estate agent's calls, and the listing agent's, about my pre-approval?
10. What could slow down my closing, and how do we avoid it?

Clear, specific answers are a good sign. If you get a vague answer to the payment question, ask again: New Hampshire property taxes are a big part of the payment, and a quote without them can be far off. The NH payment calculator includes them.

What should a pre-approval letter show NH sellers?

Listing agents in southern New Hampshire often read the pre-approval before they look at the rest of an offer. A useful letter generally shows:

• Your name and the date, with an expiration date that covers your house hunt
• The loan type, such as conventional, FHA, VA or USDA, and the purchase price or loan amount it supports
• That your credit, income and assets were reviewed, not just stated
• Any conditions that remain, such as the appraisal and a clear title
• The loan officer's name, phone number and NMLS number, so the listing agent can call

A letter is not a commitment to lend. The pre-approval guide covers the documents you'll need and how to keep the letter current while you shop.

Why does a local loan officer matter in New Hampshire?

Many New Hampshire purchases have details a loan officer from out of state may not see often:

• Wells and septic systems, which can bring water tests and inspection conditions (well and septic guide)
• Current use land and the land use change tax on larger lots (current use guide)
• Property tax rates that differ a lot from town to town, which change your payment and what you can afford (tax rates for every town)
• The NH real estate transfer tax, split between buyer and seller (NH closing costs guide)

A local loan officer also knows the agents, title companies and attorneys you'll be working with, which helps when a closing date is tight.

What warning signs should I watch for?

• No NMLS number, or one that doesn't match. Every licensed loan officer has one, and it should match the name on NMLS Consumer Access.
• Pressure to commit before you see a Loan Estimate. Once you apply, the lender has three business days to give you a Loan Estimate, a standard form that makes offers easy to compare.
• Large fees up front. Before you get a Loan Estimate and say you want to go ahead, the only fee you can be charged is generally a small credit report fee.
• A payment quote without taxes and insurance. It understates what you'll actually pay each month.
• Surprises at the end. You get a Closing DisclosureClosing Disclosure A five-page form you receive at least three business days before closing that shows your final loan terms and costs. See the full glossary× at least three business days before closing. Compare it with your Loan Estimate and ask about anything that changed.

The CFPB's Loan Estimate explainer walks through the form line by line.