Mortgage Broker Services Vary Depending on Type of Lender You Choose
A mortgage broker is a financial professional who facilitates the process of obtaining mortgage loans for a client, and often acts as a connection between the borrower and lending institutions. Mortgage brokers may work directly with one lender or they may work with a wide variety of lenders. They also can be licensed by the Office of the Superintendent of Foreclosure in your state to conduct transactions on your behalf. To become a licensed mortgage broker, you need to be at least 18 years old and a US citizen. Before a broker can get licensed, he/she must pass the examinations required for mortgage brokers in many states.
Mortgage brokers will help you to refinance your mortgage and they play a key role in the closing of a mortgage loan. He/she facilitates the preparation of a loan application that is submitted to various loan officers at different financial institutions. The loan officers are responsible for assessing the application and determining whether the borrower qualifies for the loan. Once the application is approved, the borrower will be given the specifics of the exact loan amounts and the terms and conditions of the loan.
After approval by one or more loan officers, the next step in the process is for the mortgage broker to work with a lender to find a suitable lender for the borrower. Most borrowers choose to borrow from a local lender because that lender is closer to home. However, even local lenders sometimes have higher interest rates and other fees than more distant lenders. Therefore, a good rule of thumb is to find out which lender offers the best deal in the area in which you live. The lender will either be your local bank or a mortgage banker that works at a nationwide level.
After the loan officer finds the lender that offers the best deal, he/she contacts the prospective borrowers and prepares the necessary paperwork. This paperwork generally includes the application, fee schedule, credit report, hardship letter explaining why you are unable to make your regular mortgage payments, and so on. Then the mortgage broker travels to the lender's office. He/she talks to the loan officer face-to-face and presents the borrower's loan information to the loan officer. From this point, it's up to the loan officer to make the final decision as to whether to approve the application. Discover more about a mortgage here.
Depending on the type of mortgage product that you are seeking, lenders usually have different loan officers that they use to approve or reject various applications. Home mortgages, for example, typically involve a significant amount of money and a great deal of time. Because of this, lenders tend to look at the credit history of a mortgage broker rather than his/her personal credit history. (Because of the many factors that determine your mortgage eligibility, your credit score is of less importance than the other factors that affect your loan eligibility and interest rates.) This is why there are mortgage brokers with impeccable personal credit histories that work at the courthouse in the area in which you live.
When the lender receives your application, it is not forwarded directly to the underwriter. Instead, the broker goes to work on your behalf. He or she first analyzes your mortgage rates, income information, and other standard data that will help the lender determine if you will be eligible for the loan. Then the broker makes an appointment with the underwriter. Once the appointment is made, the broker may even speak directly to the underwriter on your behalf. Find out more about mortgage here: https://en.wikipedia.org/wiki/Mortgage_bank.
