What Does A Mortgage Broker Do?
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Being A Mortgage Broker Can Be A Fulfilling And Rewarding Career!
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Mortgage brokers act as intermediaries for people and businesses seeking to open a mortgage loan. As such, they gather information from potential borrowers and match it with possible mortgage products offered by a wide variety of lenders. This helps both lenders and borrowers because it eliminates a great deal of the research and process involved in the creation of a mortgage loan.
Fierce Competition Has Created A Good Business For Mortgage Brokers
In the past, lending institutions, such as banks sold their loan products themselves; however, the mortgage market has become extremely competitive and a demand has arisen for mortgage brokers to help sort through mortgage products and make good matches between borrowers and lenders.
As a matter of fact, in the today’s most developed mortgage markets, the majority of mortgages are sold by mortgage brokers rather than by banks. It is the mortgage broker’s job to seek out the best deals in mortgage products available and present them to hopeful borrowers. To this end, the mortgage broker spends a great deal of time researching lenders and banks to uncover the best deals the industry has to offer.
Do Mortgage Brokers Have To Follow Any Rules?
Generally speaking, mortgage brokers are regulated and must comply with finance laws and banking laws in the borrower’s jurisdiction. Be that as it may, regulation varies from one place to another. For example, in Canada, lenders pay mortgage broker fees and borrowers pay nothing. In other areas, this is reversed. In the US, only Washington state has laws that govern mortgage brokers.
How Do Mortgage Brokers Help Borrowers?
In addition to locating the best mortgage product for the borrower, a mortgage broker must help the borrower gather all proper documentation to be presented to the title insurance company. He or she must also verify all documents used throughout the process and evaluate such documents as bank statements, tax information, credit history and pay stubs to be sure of making a good match between borrower and mortgage product. This is a time-saver for the lender, as well, because the mortgage broker takes care of all the explanations of necessary documents and helps the borrower prepare a nice package of documents to prepare to the lender.
Once a good match has been made and all the documentation is properly in place, the mortgage broker is should make sure the borrower understands all the legalities of the loan, along with terms of repayment and consequences of default. Once all requirements have been satisfied, the mortgage broker can originate the loan.