The Importance of Choosing a Licensed Mortgage Lender

The Importance of Choosing a Licensed Mortgage Lender

When choosing a mortgage lender, it is essential to first ensure that your lender is licensed and legitimate. Here, we have put together some resources to help you understand what constitutes a licensed lender, and why it matters. 

Working with a Licensed Lender Protects You

In Florida, a license is required for anyone offering a mortgage loan. Prior to licensing initiatives, unscrupulous lenders were increasingly providing residential loans with ridiculously high fees and interest rates.  In response, the state of Florida created House Bill 935 under Chapter 494 of Florida Statutes. Since the introduction of that bill, the Florida Office of Financial Regulation has stepped in to provide regulatory oversight for Florida’s financial services industry.  

A Licensed Lender is Trained and Educated to Help Buyers

Buying property can be complicated, and proper education and training are essential to fully understand the process. Licensed mortgage lenders receive accreditations to validate that they have the required knowledge to help buyers. The policies and procedures of a licensed lender protect consumers from both innocent mistakes and calculated scams. 

A Licensed Lender is Obligated to Help You Make Good Financial Decisions.

Licensed lenders help borrowers get the financing they need with the full protection of the law. A legitimate lender will never provide you with intentionally misleading information or encourage you to get into a loan that is above your financial capabilities. 

Choosing a Lender in the State of Florida 

You can visit the NMLS consumer site to see if your mortgage lender has the qualifications to protect you through a real estate transaction. The NMLS manages the database of licensed mortgage lenders, so it is the best place to conduct research on the legitimacy of the professionals you transact with. Reputable lenders such as Benworth Capital Partners, LLC are fully licensed. 

In addition to having the accreditation to be a licensed mortgage lender, Benworth is a Licensed Consumer Financial Company through Benworth Financial, LLC.  This accreditation gives Benworth the authority and accountabilities to help consumers get cash by using the value of a property they own as loan collateral.