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Welcome to the BeSmartee blog. Enjoy a wide selection of articles related to mortgages, the industry, and real estate.

7 People You Will Get to Know During the Mortgage Process

By Veronica Nguyen · Apr 11, 2015 · Mortgage

7 People You Will Get to Know During the Mortgage Process

Image courtesy of Flickr, Steve wilson

Learn about the people who will be involved in your mortgage loan process. Knowing who they are and what they do will help you understand how best to use their services to your benefit.

1. Real Estate Agent

A real estate professional that will help you find your home based on how much home you can afford. They will also provide you with a list of potential homes and help you make your selection. Once you are ready to make an offer they will handle all contracts and negotiations with the seller's agent.

What Are a Real Estate Agents Responsibilities?

  • Prepare purchase agreements
  • Coordinate closing documents
  • Oversee signing of documents
  • Oversee disbursements of funds
  • Negotiate between buyer and seller
  • Present purchase offers
  • Coordinate open houses

2. Loan Officer

This representative works for a broker or lender. They will get you approved for a loan based on your income, finances and credit information. A loan officer will present you with different loan options based on your qualifications. They will guide you through the loan process and communicate with you in order to fund your loan.

What Are a Loan Officer's Responsibilities?

  • Evaluate the loan application
  • Ensures that loan application is complete
  • Verify borrowers credit worthiness
  • Search and display loan programs and rates to the borrower
  • Communicate between the borrowers and underwriters

3. Loan Processor

This representative will process your file from beginning to end. They will make sure all of your documents are in order, such as your W-2's, pay stubs and credit report. Once they gather your documents and put them in order, they present your file to the underwriter. The loan processor will also check the files for any errors and correct them in order to ensure you file is not delayed.

What Are a Loan Processors Responsibilities?

  • Liaison between lender, borrower, underwriter and loan originator
  • Collect all documents to present to the underwriter
  • Order the title and credit reports
  • Verify the income and accuracy of each document submitted

    Many of the loan processors duties are quickly becoming automated. So, don't be surprised if your lender asks you to submit certain information and documentation online.

4. Mortgage Underwriter

The mortgage underwriter is the person who will approve or reject your loan application. They work for the lender directly and look out for the lenders best interest. This is why is important to have your loan application in order and be prepared to submit any documents to prove that you can afford the loan that you're applying for.

What are the mortgage underwriter's duties?

  • Review and identify any fraudulent activity
  • Work close with the loan processor to review all documents
  • Underwrite the loan in compliance with credit and regulatory guidelines
  • Ensure all the data is entered correctly

5. Real Estate Appraiser

Appraisers typically work independently and give their unbiased opinion of how much a house is worth based on factual data. They provide the final appraisal report directly to the lender and give you a copy within 3 business days. All real estate appraisers are must be licensed.

What Do Appraisers Consider When Valuing a Property?

  • Property size
  • Condition of the home
  • Comparable homes sales in the neighborhood
  • Inspection of the exterior and interior of the home
  • Check for any home improvements
  • Check for permits
  • Consider the how many rooms are in the home

6. Home Inspector

This licensed individual is hired to make sure the home that you're buying is in good condition. If they discover any defects on the property they will let you and your realtor know in their final inspection report. Your real estate agent can help you find and hire a licensed home inspector. The home inspection report will ultimately help you make an informed decision to buy the home or not based on their findings. The lender will also use this report to assess whether or not the property is in a good enough condition for their investment.

What Does a Home Inspector Consider for the Inspection Report?

  • Roof
  • Gutters
  • Chimney
  • Foundation
  • Grounds
  • Drainage
  • Garage
  • Plumbing
  • Electrical
  • Heating and cooling systems
  • Ceilings and stairs
  • Windows, doors and floors

7. Closing Agent

The closing agent is a neutral third party representative responsible for transferring title from seller to buyer or from lender to borrower. They also ensure that everything is completed according to the escrow instructions and purchase agreement. The closing agent will accept money from the buyer and the buyer's lender to hold in a trust account. When it's time to close the loan, they disburse all money accordingly. The closing agent also ensures that all documents are received from each party involved in the transaction. Additionally, they make sure all vendors associated with the transaction are paid as well. The closing agent is typically selected by the real estate agents or the lender.

What Are a Closing Agents Responsibilities?

  • Calculate final costs
  • Wire funds to appropriate parties
  • Conduct a post-closing audit
  • Review the HUD-1
  • Coordinate transactions between all parties involved
  • Comply with mortgage laws and regulations

Some of these mortgage professionals do more than just the responsibilities mentioned above and many tasks are becoming automated through online systems as time goes on. Today, you have systems that underwrite files, capture e-signatures and calculate fees online. Nevertheless, you should know the professionals involved in the mortgage process and their responsibilities so that you know how to use their services to suit your best interests.


Real Estate Commission: Explained, Revealed and Compared
By Arvin Sahakian · Aug 17, 2015 · Real Estate Data

Real estate agents receive commissions from home buyers and sellers, collectively earning over $50 Billion per year. Learn how commission amounts are set, who pays them, and how they work in this article. Read more.

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California Property Tax: Complete List by County 2014-2015
By Tim Nguyen · Nov 26, 2014 · Real Estate Data

List of secured property tax rates for all counties of California fiscal year for 2014-2015. Read more.

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California Proposition 60 and 90: Your Complete Guide
By Tim Nguyen · Nov 28, 2014 · Real Estate Data

If you live in California and are over the age of 55 you can effectively reduce your property taxes when buying a new home. Read more.

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What to Expect During the Home Loan Closing Process
By Arvin Sahakian · Feb 24, 2015 · Mortgage

You've heard the term used before, but what does loan closing mean? Find out all you need to know about the process. Read more.

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The Surge in Foreign Real Estate Investment in the United States
By Laura Agadoni · Feb 24, 2016 · Real Estate

Foreign real estate investment in the United States, both commercial and residential, is a huge phenomenon that is only expected to accelerate, maybe even to skyrocket, in 2016. Read more.

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Houston vs. Dallas: Which One is Better to Live in?
By Amanda Curry · Oct 11, 2016 · Real Estate

Houston Vs. Dallas? If you are considering moving to either of these major metropolitan areas, we've created a resource to help you make the decision process a little easier. Read more.

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5 Illegal Borrowing Activities: Things That Are Illegal When You Try to Get a Home Loan
By Laura Agadoni · Jan 22, 2016 · Mortgage

Whenever there is money to be made or money to be spent, some unscrupulous folks will take advantage, trying to game the system or commit all-out fraud. Read more.

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Does Homeowners Insurance Pay Off your Mortgage if the House is Burned Down?
By Amanda Curry · Feb 8, 2017 · Mortgage

In this article, we explore how homeowners insurance works and what happens in the event of a house fire. Read more.

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16 Ways to Improve Your Debt-to-Income (DTI) Ratio
By Veronica Nguyen · Nov 29, 2014 · Mortgage

Your DTI is used by mortgage lenders to determine whether you qualify for a loan, and if so, for how much. Improve your DTI with these 16 tips. Read more.

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5 Tips on Getting a Mortgage Loan after Bankruptcy
By Veronica Nguyen · Apr 15, 2015 · Mortgage

A bankruptcy will make it very difficult to attain a home loan. These 5 tips will help you re-establish your credit quickly in order to qualify for a home loan. Read more.

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