Mortgage Refinancing: Choosing the Best Loan Officer

Mortgage refinancing should be a smooth and painless experience for the homeowner. If you choose the wrong loan officer, however, you could be in for a difficult and expensive transaction.

Ask for Referrals

When choosing a loan officer, ask friends and family for referrals. There is likely someone you know who can recommend a loan officer. If you know a friend or family member to have had a good experience with a particular loan officer, you are less likely to be ripped off or have a bad experience.

Do Your Research

When you find a loan officer you are interested in working with, be sure to check his or her credentials. Every state has varying regulations on a loan officer's education and licensing. Check with your state to be sure the loan officer is in compliance.

Shop Around

Always get a second opinon. Compare rates, closing costs and origination fees. Always ask how the loan offcier is being paid. It should clearly be marked on a good faith estimate as a loan processing fee or similar charge. If not, he or she may be getting paid on a yield spread premium, which means the loan officer charges you a higher interest rate and pockets the difference.

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