By Patti LeVan, Multiline Mortgage Services, Inc.
June 20, 2017
I recently did a search on the internet for the definition of mortgage broker. Knowing what a mortgage broker actually does, since that is what I do, I found a lot of misinformation.
For example, Zillow defined a mortgage broker as an originator that sells the loan application to the wholesale lender then gets out of the picture leaving the client to fend for themselves. COMPLETELY AND UTTERLY FALSE!
A mortgage broker finds a client usually through referrals from other clients, attorneys, realtors and other professionals in which a relationship has been established through good work performance. Trust me, these professionals will not risk damaging their reputations by referring clients to a broker who underperforms. They, too, rely on a network of referrals especially from clients.
The broker takes an application from the client which includes details of the client’s financial position. The broker helps the client determine how much they can afford to spend on a home based on income, debt to income (DTI), and a credit report. It’s important at this juncture to note that Multiline Mortgage doesn’t just look at affordability but also looks at sustainability. I often tell clients, “I don’t judge you for how you spend your money. It’s your money.” My goal is to make the client aware of their financial position from an objective point of view from what I see on paper and to help them decide what they can afford and sustain. Once the loan amount is established, a pre-approval letter is provided to the real estate agent.
I ask the client to start gathering what is known as the loan package which consists of taxes, pay stubs, bank statements, identification, and asset statements in an effort to prepare for submitting the loan. I will typically search for loan programs during the house hunting process so I am prepared once I receive the purchase contract. The lender field is narrowed down to usually three that have the right loan program match. Then it’s up to which lender offers the better rate and terms. This allows me to move very quickly after receiving the purchase agreement.
Once the purchase agreement is received, I’m ready to move forward on the loan with the selected lender. Throughout the loan process, the client works directly with me. If issues arise, I am there to work them out with the underwriter or others. Many times there are issues that the client is not aware of because I can resolve them without upsetting the client. My goal here is to make the process as easy as possible and to take the stress for the client.
So to say that the mortgage broker simply sells an application to a wholesale lender is absurd. I advise that clients do their homework. The best place to start is to call Multiline Mortgage Services. We are transparent. We tell it to you straight. Every time.