Mortgage Lenders Come in Many Forms

Information may not be reliable

A Mortgage Lender Greenville SC is usually a commercial bank or mortgage organization that lends and then underwrites residential mortgage loans. A broker serves as an independent financial intermediary between borrowers and mortgage lenders. In other words, mortgage brokers do not control the lending guidelines, loan process or approval. They are independent third party credit providers. Mortgage brokers receive referral fees from mortgage lenders for their services and agree to handle the loan application and related documentation for their clients.

Mortgage brokers do not deal directly with customers, but instead through Mortgage Bankers Association of America (MAERS) or another third-party group that represent the mortgage lenders. Mortgage brokers work closely with mortgage lenders, so there should be a relationship between the broker and the mortgage lender. The mortgage lenders typically have a Mortgage Broker Submission Policy and a Mortgage Lender Submission Policy. The Mortgage Lender Submission Policy sets forth in detail the mortgage lender's requirements for submitting loan applications to MAERS or another third-party group.

In general, the mortgage lender will require the mortgage broker to complete and submit a MAERS application if the broker has not previously submitted a MAERS application to the mortgage lender. If you choose to use the services of a mortgage broker, it is recommended that you also use the services of a credit scoring specialist. The specialist's services would include reviewing your application to ensure that it accurately meets the credit score requirements established by the Federal Housing Administration and Department of Housing and Urban Development, and providing a report to the mortgage broker on the status of your application. You will likely also need to provide information about your employment history and personal data such as age, address and income. You may be required to provide financial statements such as personal and business tax returns, current financial statements and a personal cash flow forecast. Mortgage Lenders and Brokers do not usually verify the information provided by applicants, so you should take care to ensure the accuracy of any financial statements you provide.

If you decide to go with a mortgage broker, you will need to select a reputable and reliable mortgage broker. Since there are so many mortgage brokers out there, you may feel overwhelmed and unable to make an informed decision. Mortgage brokers differ greatly in the quality of their service, the rates they offer and the type of loan products they offer. It is important that you do not fall prey to a mortgage broker who does not have a good reputation or who may recommend a subprime product that has higher interest rates than are allowed by law. Before accepting the services of any broker, be sure to shop around to find the best mortgage lender and the best mortgage product for your needs.

Once you have narrowed down the type of lender that you want to work with, you will want to start to build your credit scores. Your FICO scores are based on your credit history and your payment history. Credit scores are closely guarded secrets, and they are often used against you by mortgage lenders and other creditors. Make sure that your credit score is as high as possible. To increase your credit scores, you should get a copy of your credit report from each of the three credit reporting agencies, which are Equifax, TransUnion and Experian; pay your bills on time; and avoid making any large purchases.

The next step you should take is to contact your local banks and credit unions. Most banks and credit unions will work with direct mortgage lenders but they will also work with other lenders, such as investment banks and thrift institutions. Direct mortgage lenders will require that you open an account with them. This account is called an unsecured line of credit, and most banks will require that this account is held for at least six months before qualifying for a loan.

There are also mortgage brokers. Mortgage brokers are independent companies that obtain mortgage loans from several different lenders and then sell these loans to customers. These mortgage brokers have relationships with many different lenders, and therefore they are often able to secure loans at better interest rates and terms than their competitors. Mortgage brokers can sometimes compete with direct mortgage lenders for customers, but in most cases mortgage brokers are not competing directly with lenders.

Another way to reduce your mortgage costs is to get your mortgage loans from a bank or credit union. A mortgage lender and credit union work under a master broker; this person coordinates all of the lender's activities with the underwriters and borrowers and makes all necessary agreements between all parties. Because these mortgage lenders come under a master broker, it is easy to work with one lender rather than dealing with many different lenders. If you are looking for a low-cost refinance, a bank or credit union may be your best option.