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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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