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Mortgage Brokers and Lenders
– Who Does What? The
mortgage broker is the person or company
who is your main contact throughout
your loan. They are often able to
work with a number of lenders, who
actually provide the funds for the
loan. Typically, the lender pays the
mortgage broker a fee for acting as
the intermediary and providing all
the customer service.
Filling Out the Application:
There are standard forms to be completed
when applying for a loan. Some mortgage
brokers keep these on their website
so you can fill out and submit the
forms on line. The information will
be verified and used to qualify you
for your loan, so take the time to
answer questions accurately.
Documentation: The
mortgage broker will need copies of
the documents you began gathering
in the first phase of the loan process,
including:
- 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
- Drivers’ license or form
of ID
- If you’re not a US citizen,
then 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:
The lender will have an analyst, usually
called an “underwriter”,
crunch your numbers and verify your
documentation to confirm your ability
to repay the loan. Once you are in
contract on a property, there may
also be a loan approval committee
which will meet to review the underwriters’
conclusions regarding your creditworthiness,
and to evaluate the property on which
they are lending. This is called the
underwriting process, and questions
are bound to arise. Be sure to return
your mortgage broker’s calls
promptly to keep the process moving
forward smoothly. Check in with your
broker periodically.
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