Determine How Much Your Client Can Borrow:
This is a function of a couple of things: How much of a monthly payment can your client afford? And, given their unique credit and employment history, income and debts, and financial goals, how much will a lender loan? A mortgage broker or loan officer can help you answer the first question, and present several different financing scenarios by asking a few simple questions. Based on standard lender guidelines, your client-borrower will have a very good idea of what terms and funding program they will benefit from the most.
Pre-qualify Your Client-Borrower for a Loan:
This is where the rubber meets the road and your client saves the most money. With the clients permission, the broker or loan officer pulls a credit report. The credit report, along with the clients residential and employment histories and income, debt and assets, helps determine pre-qualification for financing. You as the real estate agent or broker will use your clients pre-qualification status to make the best offer on the real estate your client chooses. Your client has more clout with the seller. While you and your client chose a property, the broker or loan officer finds the right loan for your client.
Completion of the Loan Application Process:
Once your client makes an offer the seller accepts, it is time to complete the loan application process. When the time is right, an appraisal of the property is ordered.
Getting the Loan Funded:
You work with the sellers REALTOR® to designate an escrow or title company to handle funding of the loan once it has been approved. The broker or loan officer works with the title company to make sure all documents required by the lender are received and in order. Your client will sign all the documents at the escrow or title company.
The Real Estate Mortgage Process is Where Your Skills Can Add Value:
The mortgage loan process is a complex process and is very rarely without glitches. While some lenders want you to believe the online loan application process is a snap, most borrowers abandon the online application process and call a mortgage broker. Mortgage brokers de-mystify the process, and do most of the heavy lifting for the client-borrower so they can concentrate on what is important: preparing to move into a new home, saving money, or making plans for their home equity check.