How do you verify that a lender is real?

Question

I got a suggestion for a company called TruFinCo. There's nothing here on BP and no one who I actually know has used them.

How does one go about making sure that a company is legit and not just a shell or scam?

Robin Simon · Answer

Why go to a lender that has no presence online when there are plenty of lenders with lots of reviews / track records on places like here and Google?

Mark Munson · Answer

Hi @Constancia R.

If they are charging you an upfront fee, they are more than likely not legitimate. Some legitimate lenders may charge an application fee, but I'd avoid that if possible. Every lender or broker should be paid at closing, that way everyone is incentivized to get your loan closed. You can search for their NMLS # as well, but in the private money/hard money space there are grey areas in certain states as to whether or not you need to be licensed. If you can't find a single review, that may be a sign; albeit, some smaller lenders with their own fund or private money may not have a ton of reviews versus the bigger lenders. If you are uncertain, just use the search on BP to find one that is well vetted.

Dave Spector · Answer

@Constancia R. If you are seeking an actual private lender or direct HML (as opposed to a third party broker) for an investment property transaction (not a consumer loan), there are numerous ways to identify them... consider starting your search here: https://aaplonline.com

Kelsey Jurewicz · Answer

I second this! Check on BBB & NMLS website for legitimacy/reviews :) links are below

https://www.nmlsconsumeraccess...

https://www.bbb.org/search

Nathan Harden · Answer

This is always something that is in the back of our minds when coming across something that is possibly "too good to be true"

If this company is offering something that beats all other competitors but nobody has ever heard of them, I don't blame you. My guard would be up as well.

Ask for referrals and doing research is the best way to protect yourself.

Erik Estrada · Answer

What kind of loan are you looking for? If it is a private loan or hard money loan, chances are that they won't have an NMLS since it is not a consumer purpose loan.

Ask them about recent closings, and get to know what kind of lender they are (IE broker or direct).

Reviews can be fabricated. A good broker or LO will answer all your concerns about qualifications, concerns, and cost

Jay Thomas · Answer

When it comes to Real Estate, you should always be especially cautious. Before making any decisions or committing to anything, reach out for referrals and do some research on the company and the offer they are making. That way, you can protect yourself from any potential scams or bad deals. If it sounds too good to be true, then make sure that you take the necessary steps to ensure your own safety. Don't let a great deal cloud your judgement - do your due diligence first!

Jay Thomas · Answer

When it comes to real estate, don't just work with any lender. It's important to make sure you work with a reputable one that multiple people have had positive experiences with. Do your research and get referrals from people you trust to find the right fit for you. Taking the time to do this is well worth it in the long run!

Eliott Elias · Answer

There are too many lenders out there to use one that has no reputation. Work with someone based off referrals.

Constancia R. · Answer

Thank you! That was precisely the sort of site I was hoping for.

How do you verify that a lender is real?

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