What Does a Mortgage Broker Do?
Here’s what a mortgage broker does:
• Takes the loan application.
• Advises you on the different loan programs, choices for Primary Mortgage Insurance (PMI), and the amount of down payment that is ideal for your situation.
• Asks for all the correct documents necessary to complete the loan application.
• Reviews your paystubs for income accuracy, consistency, and any deductions from payroll.
• Reviews tax returns for income and/or loss; including income calculations according to underwriting guidelines.
• Reviews bank statements for deposits that are not payroll, and asks for client explanation and documentation, balances, and non-sufficient funds (NSFs).
• Asks about names other than the clients’ that may be on the bank statements.
• Obtains an access letter from any non-borrowing persons on the statement.
• Makes sure all the bank statements for deposit meet underwriting standards and guidelines for the type of loan being applied for.
• Reviews credit for the number of trade lines, balances, monthly payments, recentness of any late payments, making sure that all mortgages are reported.
• Reviews bankruptcy filing to make sure it matches up to the credit report.
• Reviews the divorce decree against the tax return for dependents and matches the age of the dependents with the number of years for continued child and spousal support.
• Reviews the title report for the amount and the number of mortgage liens, tax liens, vesting, and judgments.
• Orders appraisal.
• Orders title and escrow on refinancing.
• Asks escrow for a fee guarantee on the title and escrow on the purchase within 3 days of application or acceptance.
• Follows up on appraisal providing any permits, purchase contract or other documents needed by the appraiser.
• Reviews the appraisal for accuracy of time and distance of comps, accuracy of contract agreement, quality of pictures, and amount of rents.
• Orders and reviews estimated closing statement (called a HUD-1) for fees, impounds, any credits, etc.
• Interfaces with compliance, processing and underwriting as well as escrow and title.
• Updates realtors and escrow on a purchase transaction at every step.
• At loan approval, lets client know of any additional conditions needed and helps the client understand and fulfill those requirements if need be.
• Goes to doc signing in case questions should arise.
• Informs all parties when the loan has funded.
Buying a home can be very stressful. Knowing that your broker has your best interest in mind, is an invaluable asset.