Ask About This ArticleMortgage Brokers Take The Hassle Out of Applying
If you are looking for financing for a home, there are a couple of ways you can go. You can apply directly through a lender, the traditional method. Alternatively, you can talk with a mortgage broker. The question most people have is what benefit is there to using a broker versus applying directly with a lender? Well, there obvious answers such as the fact the broker can help find the best loans for your credit profile and guide you through the process if you have never done it before. There is, however, one much more significant benefit.
Applying for a home loan is an incredible exercise in frustration. Mortgage loans are reviewed and approved or rejected by a person known as an underwriter. Lenders are famous for skimping on the number of underwriters they have in relation to the number of loans being considered. Simply put, the underwriters are overworked. This negatively impacts you in a number of ways. First off, it is nearly impossible to get a hold of them if you have a question. Second, the underwriters are going to ask for clarifications and supporting documents, often even if you have already sent them in! Third, the underwriters will lose a lot of documentation. Frankly, it is a nightmare. If you have every applied for a loan, you already know this.
Mortgage brokers are a godsend when it comes to cutting out the frustration of dealing with an underwriter and lender. The broker handles all communication with the underwriter. Since the broker tends to place a lot of loans, the lenders cater to them to get their business. In practical terms, this means underwriters actually take their calls! Shocking, I know.
Where a mortgage broker really is worth their weight in gold is if there is a problem with the application. Practically every mortgage broker has a processor working for him or her. This person is in charge of documentation for your loan. If an underwriter needs something, the processor deals with it instead of you. If the underwriter has a problem with the merits of your loan, the mortgage broker gets involved and works to find a solution the lender can accept so you get the loan. This may all sound rather simple, but it is incredibly valuable when you are waiting for loan approval as the closing for you home purchase is approaching.
Dan Lewis is with Great Western Mortgage - mortgage brokers providing home loan assistance to borrowers.
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