An individual or company that acts as an intermediary in securing mortgage loans for others is known as a mortgage broker. So a mortgage company in Grand Rapids, MI, acts as a middleman between mortgage lenders and borrowers without risking their own money.
Meanwhile, Grand Rapids is a city in Michigan, situated on the Grand River, on the east side of Lake Michigan. On its borders, there is Frederik Meijer Gardens & Sculpture Park, and it has a tropical conservatory and multiple gardens. Also, in Downtown Michigan, artists are highlighted in the famous rotating show in the Grand Rapids Art Museum. Artworks by Henry Moore, Auguste Rodin, and Ai Weiwei are part of its collection.
So the mortgage broker’s role is to investigate the client’s financial situation and find a lender in Grand Rapids, MI, that is a suitable fit and can provide the borrower with a competitive interest rate. Besides, a mortgage broker would gather all necessary paperwork from the borrower and forward it to a possible lender for review and approval.
Responsibilities of a Mortgage Broker
The responsibilities and activities of a mortgage broker change based on the mortgage broker. But, typical responsibilities include:
- Promoting their offerings to potential customers in Grand Rapids, MI.
- Learning about the borrower’s financial situation and making an informed decision.
- Understanding the market and finding a mortgage that works for the client (borrower).
- Helping the customer get a mortgage preapproval.
- Acquiring all necessary records (bank statements, payslips, etc.).
- Closing on a home loan application.
- Make sure the client/borrower understands the legal disclosures.
- All paperwork is submitted to the lender, who works to find the best possible rate for their customer.
Mortgage Brokering Procedures
Clients often approach a mortgage company in Grand Rapids, MI, when they want to buy a property or refinance an existing one.
A client goes to a mortgage broker, who then shops around to several lenders to compare rates and criteria to present the client with a range of possibilities.
The broker gathers information that will help the lender decide whether or not to extend credit to the borrower, such as the client’s income and job history, as well as the nature and value of any assets the client may own.
The loan size, loan type, and loan-to-value ratio are all factors that the mortgage broker takes into account while making this determination. The broker then acts as a middleman for the lender and the borrower by submitting the financing application for approval.
Once everything is in order, the lender will put up the money (in their name), and the broker will get a cut of the action in the form of an origination fee. And the broker is paid only when the deal is done.
Benefits of Hiring a Mortgage Broker
When looking for a mortgage or switching lenders in Grand Rapids, MI, a broker can help you budget for the costs involved. Application costs, possible appraisal fees, and origination fees are a part of the total cost (which can be between 0.5 percent to 1 percent of the loan amount).
Because brokers know so much about lenders, payback periods, and administrative fees or other expenses hidden in contracts, they save their clients a lot of time and effort. But, borrowers are still urged to do their due diligence, though.
Lenders typically know and respect brokers because of their familiarity with them. Some lenders want to deal with customers. Thus this streamlines the procedure for them. And since they bring in new customers, brokers might get preferential rates from Grand Rapids, MI, lending institutions.
Comparing Loan Officers and Mortgage Brokers
Typically, a loan officer will have ties to a single financial institution. And loans are available at competitive rates through their affiliated financial institution. Conversely, mortgage brokers advocate for borrowers by connecting them with the best possible lender, and they filter potential choices for the customer. However, not all lenders will cooperate with a broker, so that’s something to keep in mind.
