Today, the use of a Licensed Professional Mortgage Broker is one of the key strategies used by sophisticated borrowers. You can find professional loan officers in both environments. But the topic of this article is why use a mortgage broker, therefore let me continue.

A mortgage broker is an independent real estate financing professional who specializes in the origination of residential mortgage loans. Mortgage brokers normally pass the actual funding and servicing of loans on to wholesale lending sources. A mortgage broker is also an independent contractor working with (on average) as many as 10 to 15 lenders at one time. By combining professional expertise with direct access to a variety loan products, your broker provides the most efficient way to obtain financing tailored to your specific financial goals.

In the volatile home lending market, mortgage brokers can serve as safeguards, offering their clients security, safety, and peace of mind. One of the broker’s most important functions is escorting your loan application through the entire process, constantly patrolling the transactions looking for possible breakdowns. A professional mortgage broker can wade through the mountains of rate data and program options, researching current market conditions to find the most accurate and up-to-date information about cost effective options.

There are literally thousands of variables that can affect the outcome of your mortgage transaction. That’s why you need a mortgage broker to act as a liaison between the title and escrow companies, real estate agent, lender, appraiser, credit agency, the underwriters, the processors and any other services which may affect your transaction.

A mortgage broker also

  • Is required to be licensed by NMLS (National Mortgage Licensing System)
  • **bank loan officers are not ( no licensing, testing, or continued education requirements) Brokers are held to the same standard as Financial Planners, Insurance agents, and Real Estate Agents
  • Provide detailed spreadsheets on the total costs of the transaction
  • Explains all associated costs to the loan application
  • Explains the loan process from application to closing
  • Provides you with a good faith estimate of costs and fees that is bound
  • Communicated with you in a timely manner throughout the entire process
  • Coordinates the final closing of your transaction

As you can see, when you are preparing to take on your biggest investment, your mortgage, you need a professional handling all the steps to ensure a smooth transaction.