A mortgage broker is an individual or company who brokers mortgage loans in your behalf. They are typically referred to as mortgage brokers or mortgage agents. The main role of the mortgage broker is to refer clients to appropriate lenders for loans. Their role involves processing mortgage application applications and collecting all relevant documents needed to evaluate the loan application. Get more info about Scarborough Mortgage Broker Association.
Mortgage Brokers work with borrowers to obtain mortgage loans through a variety of lenders. There are a wide variety of lenders that mortgage brokers work with including banks, commercial lenders, brokers, government-sponsored institutions and other financial organizations. In order to qualify for a loan, borrowers need to complete an application that includes the required documentation. After this information has been submitted to the appropriate lender or company, the lender will conduct a review to determine if you are a good credit risk. Based on the lender’s evaluation, you may be referred by the middleman to appropriate lenders or brokers for additional information.
Upon approval from the lender or broker, the potential lenders or brokers then provide the borrower with loan offers. At this point, the borrowers need to choose which offer to accept. Once you have decided on the loan terms and have accepted the offer from a specific lender or broker, the mortgage banker or middleman will deposit your loan amount into your bank account. From there, borrowers can choose to make payments directly to the lender or broker or, in some cases, they can defer the payment until the entire loan has been paid off completely.