A mortgage refers to a loan acquired for a property or a house that has to be paid eventually over a specific period of time. It is more like your personal guarantee that you will repay the money that you have borrowed from the specific mortgage lender. Since this is a huge market there are a myriad of mortgage companies with attractive loan offers. It might be a tedious task to chalk out a plan for the kind of mortgage you would be willing to go for, it is even more difficult to make a survey of your own and choose the appropriate mortgage company and complete the various complicated formalities involved in gaining the loan. With your busy work schedule it is too stressful to do all this on your own. In such cases, you hire someone to share your burden and take your loan issues on his shoulders for a certain fee, a person called the mortgage broker.
A mortgage broker acts as the channel between mortgage lending individuals and companies and you. He sells the mortgage loans on behalf of these institutions. Unlike, the earlier times, where banks and other lending establishments used to sell their own products, these days on account of high competitiveness in the mortgage industry, a mortgage broker plays a significant role. In the US including states like Arizona, California, Florida, Hawaii, Nevada and others these brokers are the largest booming seller of mortgage products for the lenders.
The function of the mortgage broker varies according to the different regulations followed in different countries. Some places have a lot of banking and finance laws to be followed in the jurisdiction of the consumer and in some others there are no specific laws. The role of the broker is to carry out duties like, marketing for the lenders in order to attract prospective clients and performing a thorough assessment of the borrower’s financial circumstances and his credit history and his capability to afford the loan. The broker verifies the financial stability of the mortgagor by interviewing him and checking his credit history via his credit card reports, also by checking up on the borrower’s document of income. Assessing the market and presenting to the borrower the various mortgage products in the market that suits the mortgagor’s needs and recommending an appropriate lender is another important role played by the mortgage broker.
He then applies for the lender’s approval by presenting in front of him all relevant documents that give details about the borrower’s pay-slips, bank statement, financial stability and other possessions. He also goes to the extent of completing the lender’s application form for the borrower. He makes sure that he explains all the conditions of obtaining the loan on the lender’s application disclosure. Finally, he submits all the relevant documentation of the mortgagor to the mortgage lender.
Usually the bigger and reputed financial institutions hire their own brokers. They have similar responsibilities as that of the regular mortgage broker. The only difference is that, they do not operate independently. Another hot tip: the best mortgage rates are found at SpeedTrack Loans speedtrackloans.com