Mortgage Broker California is Your Loan Guide

Who is a broker?

In very simple words, california mortgage loans is a middleman who directly works for both the homeowner and the bank or lender. He guides and assists a consumer to qualify for purchase mortgage and refinance. On the other side, the broker assists the lenders to get large number of borrowers who leave them in business.

How does he act? 

A mortgage broker provides large number of loan products on behalf of several lenders whom he works with. Though it’s the creditor who provides loan money to the debtor, but it’s the broker who plays an important role to bring both of the parties in contact to each other. In other words, he offers loan by serving as a liaison between both of the parties. A broker either works with established firm/agency or independently. 

What is the procedure? 

He accepts applications of the homeowner and attempts to deal with the terms and interest rates. In addition, he collects all the required documents, such as employment verification and documentation, credit report, property appraisals, asset disclosures etc. Moreover, he is responsible to provide state and federal disclosures that are required. Once an application is complete, he gives it to the concerned lender who approves loan approval and related expenses. 

In order to help the borrower with correcting credit issues, most often a mortgage broker California provides basic credit counseling. He may also advise debtor to take better rates of loan. He provides all the required info, answers all the queries of the borrowers and helps them in understanding process of the application as well as details of loan. But keep in mind, the broker is in picture until the process is complete. Once the mortgage is obtained by the debtor, the broker is out of the loop and then all the related queries and problems are discussed with the concerned lender only.

What does he work for? 

Needless to mention that everybody works for earning bread and butter, so same thing goes with broker. He gets good commissions in favor of the job done for both of the parties. Commonly, the commission is indirectly drawn by the homeowner. He receives his commission after the loan is closed.