Though most people are aware of their existence, not everyone understands exactly what a mortgage broker does concerning the home buying process. In briefest terms, the purpose of a mortgage broker is to identify lending institutions willing to provide mortgage loans to individuals based on numerous factors including income, debt, and creditworthiness.
The tasks performed by mortgage brokers not the Mortgage Banker Long Island can vary significantly but may include things such as conducting marketing initiatives designed to obtain clients, assessing applicants’ financial situations and scouring the mortgage market for appropriate loan products. They may also submit applications for loan pre-approvals, assemble critical documentation and explain all legal disclosures.
Following the mortgage meltdown and subsequent economic downturn, the mortgage brokerage industry became the subject of a significant amount of government regulation. As such, brokers are typically registered by the state in which they operate and will bear personal liability in the event of fraudulent lending activities.
The Nationwide Mortgage Licensing System and Registry is also in place to provide a stable framework for oversight and consistency in the home loan industry. Those with criminal records and other blemishes in their background are likely to be denied licensing through this system.
Ultimately, those interested in securing a favorable home mortgage tend to find working with a broker to be a valuable experience. The knowledge, contacts, and resources of these individuals can make identifying optimal loan products and terms much simpler than it might otherwise be.
Finding a reputable, trustworthy mortgage broker can be as easy as asking friends and relatives for personal recommendations and referrals. In the end, building a healthy relationship with a seasoned mortgage broker can bring home ownership well within reach at terms that are affordable, advantageous and, in the big picture, financially sound in every way.