Brokers conduct the work that banks used to do by helping borrowers through the process and ensuring that the product they offer is consistent with their aims and fits their needs and objectives. To ease the application process, they analyze living expenditures and clarify the charges involved.
The Mortgage Broker examines the client’s circumstances and evidence to determine if this is a prime or non-conforming loan. If the credit score is less than 650 or there is a minor paid default, the Mortgage Broker will need to place this loan with a lender that is willing to work with this circumstance. If the applicant has low credit or is self-employed without up-to-date tax returns, the mortgage broker will need to look into lodging this loan with a non-bank lender that takes bad credit home loans, or a Low Doc Loan is necessary for self-employed applicants.
The broker collects all documented proof to support the application, demonstrates servicing by completing a lenders calculator, and collates it for a completely compliance submission that meets the customer’s aims and objectives. The broker enters information into the lender’s system. In addition, the broker orders and follows up on valuation and price inquiries.
Once the application has been submitted to the lender, the broker will follow up to keep the application rolling and to keep the customer updated all the way to settlement and beyond.
Brokers are currently paid an upfront fee plus a trailing payment. If the loan is paid off or refinanced within 12 months, the lender receives a complete claw-back, which means the upfront fee paid to the broker is refunded in full. The loan must be well-managed and not fall behind in order for the trail to be paid.
The broker conducts a yearly evaluation with the customer to verify that the product continues to suit their needs.
The broker serves both the bank and the borrower.
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