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A Mortgage Broker Can Help You Get The Loan You Need!
A mortgage broker plays a major role in the provision of mortgage loans for the general public. An individual, or company, can seek mortgage funding either by applying directly to a lender or by engaging the services of a broker. A mortgage broker is responsible for finding the best mortgage available and arranging for an application to be submitted to lenders for approval. The broker’s services will include comparing the various mortgage offers from different lenders and providing the client with the most affordable loan. Some brokers arrange direct applications for clients but may also refer the client to various lenders for information on loan options. Mortgage brokers typically work independently or in partnership with other professionals.
A mortgage broker works on the customer’s behalf to secure mortgage financing for their property. A mortgage broker works in the same capacity as a loan officer, i.e. they locate a lender that has the best loan offer and then find ways to ensure the mortgage lender will accept the offer. A mortgage broker consults the borrower on all aspects of mortgage financing including interest rates and loan terms and conditions. Brokers also negotiate the terms of the mortgage for the lender and ensure the lender will honor any documents required such as credit reports and appraisals.
The main role of the mortgage broker is to secure mortgage financing for borrowers. This involves finding a lender that has the best offer and negotiating the terms and conditions of the loan. A mortgage banker generally deals with larger financial institutions such as banks or credit unions and has a long term relationship with the lenders they have under contract. A mortgage banker will often review loan offers from smaller lenders on behalf of the larger institution. They will often recommend the most financially feasible offer to the borrowers.
The mortgage banks are large commercial banks which have branches at many places throughout the country. These banks also conduct home loan refinancing through brokers. Most banks require that you submit your loan application to them through a broker; however, not all banks perform this practice. The majority of banks only work with a few approved lenders. In addition to banks, some independent mortgage banks also work with brokers.
Most brokers will require origination fees but not all do; in fact there are several brokers that only work with lenders that have no origination fees. Mortgage brokers receive referral fees for their work; however, lenders may pay origination fees to brokers as well. Mortgage brokers often work with multiple lenders and multiple loan applications, which increase the amount of work required of them. There are several factors that determine the origination fee structure for mortgage brokers; these include the size of the loan, the amount of processing time required and the type of loan being presented to the lender.
Mortgage brokers work closely with the loan officers of the participating lenders; therefore, they can inform loan officers of any necessary documents that must be submitted when the loan closes. Mortgage brokers work to close the loan on behalf of the lending institutions. They have no direct involvement with the loan officer, therefore they don’t need to be concerned with the loan being processed.