Mortgage Brokers and Lenders – Who Does What?
The mortgage broker is the person or company serving as your main point of contact throughout your loan. A mortgage broker will often work with a number of lenders, who provide the funds for the loan. The lender typically pays the mortgage broker a fee for acting as the intermediary and providing customer service.
Filling Out the Application
When applying for a loan, there are standard forms that must be completed. Most mortgage brokers keep these forms on their websites so you can easily fill them out online. It’s important to take your time when answering the questions, as the information will be verified and used to qualify you for your loan.
Documentation
The mortgage broker will require copies of documents, such as:
- Either 2 years of W-2 forms from your employer or 2 years of tax returns if you are self-employed
- Recent pay stubs
- 3 months’ bank and money market statements
- Brokerage, mutual fund, and retirement account statements
- Proof of other income sources (alimony, trusts, rental income, etc.)
- Credit card statements
- Auto /boat/student / miscellaneous loans
- Driver’s license or form of ID
- If you’re not a US citizen, then a copy of your green card or visa
- Copy of any existing mortgage debts if you are applying for a home equity line of credit or another mortgage
Stay in Communication
To confirm your ability to repay the loan, the lender will have an analyst, usually called an “underwriter” crunch your numbers and verify your documentation. Once you are in contract on a property, a loan approval committee may meet to review the underwriters’ conclusions on your creditworthiness, and to evaluate the property on which they are lending. This is known as the underwriting process, and questions are bound to arise. In order to keep the process moving forward smoothly, it’s imperative to return your mortgage broker’s calls promptly. You should be checking in with your broker periodically during this time.
