Mortgage brokers play an important role in the home buying process. A mortgage broker acts as an independent intermediary who brokers mortgage deals on behalf of companies or individuals. Mortgage brokers usually work for a particular lender, but sometimes work as independent contractors for different lenders. Their role is to identify potential mortgage deals and advise their clients to apply for those loans. In most countries, mortgage brokers are regulated by government bodies such as the FSA (Financial Services Authority).
One of the main roles of mortgage brokers is to coordinate the whole mortgage application process between the borrower and the lender. They ensure that all information provided by the borrower is correct and that the documentation submitted by the borrower is complete and up to date. They also check the eligibility of the borrower for a loan, contact the lender if one is identified, advise the borrower on the type of mortgage deal they can choose, discuss the fees involved in the mortgage deal, and prepare and submit the final mortgage application. Some lenders have mortgage brokers on their own, while some rely on a third party mortgage broker company to offer the services. Regardless of whether mortgage brokers are used, the overall responsibility for the mortgage process remains with the borrower. Be sure to view here for more details!
The main source of income for mortgage brokers comes from the fees paid by the borrowers for their services. These fees are paid to the broker according to the rates they offer. Some lenders allow their mortgage brokers to represent more than one lender and offer multiple services to borrowers. Such lenders may require higher charges from borrowers. On the other hand, some lenders allow only one broker to represent them and charge lower rates. Be sure to click here for more info!
Mortgage brokers receive instruction from the lending institutions where the borrowers intend to obtain a loan. Mortgage originators work for a number of lending institutions such as commercial banks, savings and loans, mortgage companies, and credit unions. Mortgage loan officers perform a number of functions such as loan processing, loan origination, underwriting, marketing, and customer service.
Another important function of mortgage brokers is the negotiation process between the borrowers and the lenders for reducing the interest rate and other charges. Although some lenders allow borrowers to make direct negotiations, most mortgage brokers refer the case to loan officers at the bank for processing. Brokerages also help many lenders in collecting payments from the borrowers and providing information on loan approval and closing dates. In many ways, the primary role of the broker is to act as a liaison between the lender and the borrower.
Mortgage brokers usually deal with several different banks or financial institutions. They find the appropriate loan originators, contact them, get their loan approval, and close the loan amount with the bank. Many mortgage brokers have relationships with a large number of banks, which allows them to get loan amounts approved quickly. Brokers also help in managing loan amounts and loan processing applications from various banks. Learn more about mortgage at http://kids.britannica.com/students/article/Mortgage/330607.
