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Mortgage brokers do not lend money. A mortgage broker provides you with the service of connecting you with the right mortgage lender. They are independent contractors who offer the loan products of multiple lenders, called wholesalers. These wholesalers are some of the largest lending institutions in the nation and most are familiar to the general public.
A broker counsels potential customers on the loans available from different lenders. They also counsel on any problems involved in qualifying for a loan, including credit problems they take the borrower's application, and then process the loan. Processing includes compiling the file of information about the transaction, including the credit report, appraisal, verification of income, employment and assets, and so on. When the file is complete, it is handed off to the lender, who underwrites and funds the loan. This is generally where the relationship ends.
Excellent mortgage brokers go much further. They assist you in determining the proper loan structure. For example, if you have less than 20% to put down then you may have to pay PMI. But does that make the most sense? Maybe it would be better to structure it with a second mortgage to avoid PMI. They then ask detailed questions to confirm the best type of loan for you; “30 year fixed”, “adjustable rate”, “intermediate term interest only”, stated income are just a tip of the iceberg. They then compare the cost of these various loan options over a period of time. Once you agree on the loan and structure, the good broker will guide you through the process, communicating proactively along the way.
At Family Mortgage, we believe that once your loan closes, our relationship just begins. Managing your mortgage over your lifetime to maximize your wealth is our trademark.
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