Thinking about using the services of a mortgage broker in the Houston area? First you need to understand what the responsibilities of a mortgage broker.
In financial terms, a brokerage is a company that processes a transaction between two parties – an equities trader and a major equities exchange. A broker also does the job of mediating between the seller and the buyer, acting as a principal party to ensure that no one is cheated. The case is not notably different in the real estate market, with Mortgage Brokers in Houston, Texas performing the same functions as it relates to their sector.
Gone are those days when banks and other such lending institutions handled their loans. The growth of the mortgage market in size and competitiveness has however changed the industry, with mortgage brokers becoming increasingly popular. Research has shown that mortgage brokers have become the largest distributors of home loan products in most markets. However, regulatory bodies have put in place policies to ensure the protection of customers, with the extent of regulation depending on the jurisdiction.
A Houston mortgage broker is tasked with the responsibility of providing advice that is most suitable for the borrower’s circumstances. Consequently, the broker is held liable for wrong or damaging information to the client. It is worth noting that there are instances where the broker’s sole responsibility is to point the borrower in the direction of the right home lenders, without providing any further advice to the clients.
- A mortgage broker is responsible for conducting marketing strategies to ensure that clients are attracted to his or her business.
- It is the responsibility of the mortgage broker to accurately assess the circumstances of the borrower, which include but not limited to the borrower’s ability to pay off the debt as well his credit history.
- The brokers should search the market to find the most suitable mortgage product for the client.
- The broker is responsible for pre-qualification and pre-approval – lender’s agreement in principle.
- The broker also ensures that all necessary pertinent documents are gathered and provided by the borrower.
- The proper completion of the mortgage application form is also a responsibility of the broker.
- The broker is required to explain all the legal disclosures of the contract to the borrower and ensure that he or she understands.
- The submission of all necessary materials to the lending institution is the broker’s responsibility.
A Houston mortgage broker is expected to work with several lending institutions to find the Best Home Loans available to a borrower, ensuring the financing option is as affordable as possible. This is mandatory on the broker, whether the borrower has a perfect credit or not.
Unlike a loan officer at a nearby bank, a mortgage broker searches for the lowest possible mortgage rate at several lending institutions in a bid to get the most affordable mortgage for clients. Brokers get paid through commissions, which is usually added fees to the original cost of getting the loan.
The benefits that come with hiring the service of a trusted home loan broker cannot be overemphasized. They save you time and stress that could have been spent on research and other such works to get affordable mortgages. This is particularly true as their experience and knowledge of the market put them in a better position to get such loans easily and quickly.
It is worth noting that due to the number of Houston mortgage brokers in the industry, getting the right broker can be tricky. However, the internet is usually an excellent place to begin your search as most of the trusted mortgage brokers can be found online. Houston home lenders also prefer to work with reputable online mortgage brokers, as it saves time and effort since all the required information is consolidated into one site.
Online mortgage brokers also make it easy for lenders to get quotes quickly, while also making it easy for borrowers to conduct mass canvassing. Borrowers should note that interest rates are not usually static and are determined based on several factors. The factors used in determining interest per borrower include the location of a property, employment history of the borrower and the borrower’s credit score. Therefore, it is essential to provide the information required and ensure they are as accurate as possible to receive the right rate quote from home loan companies.