The Mortgage Industry has grown tremendously over the last decade. Types of Mortgage Loans, especially for home buyers, have increased greatly. With the kind of financing options available to the home buyer, it is difficult for the home buyer to make informed decisions and chose the right kind of loan. This is where Mortgage Origination can be extremely useful.
Mortgage Origination is the process of consulting the home
buyer of various mortgage loan packages and helping the buyer
make the right decision based on his/her requirements and
other factors. An individual or a Bank that offers such a
service is known as the Mortgage Originator. Simply put, a
Mortgage Originator acts as a consultant to the Home Buyer
and helps him/her in selecting a home loan best suited to
their needs. The Originator acts as an intermediary between
the Home Buyer and the Loan lender.
The main advantage of hiring a Mortgage Originator is that
as a Home Buyer, you can get expert, impartial advice on various
home loan packages. Every Bank or Institution that offers
home loans would try and sell their own products aggressively,
always highlighting their strong points. However, to get a
clear idea of the pros and cons of each loan package and how
well they suit your needs, you must be able to compare these
packages without having a biased approach. The Mortgage Originator
achieves this for you.
Moreover, an originator would also handle the loan process
to ensure that the loan is cleared smoothly and efficiently.
In other words, the originator would facilitate the loan approval
process. The approvals are faster as Banks and other lenders
always offer priority service to Mortgage Originators. Besides,
the Mortgage Originator usually shares an alliance with more
than 20 lenders. Thus, going to one Mortgage Originator is
as good as visiting 20 mortgage loan lenders. This saves enormous
time and effort.
The services Mortgage Originators provide is very similar
to the services provided by Mortgage Brokers. However, like
in the case of Brokers, you do not even have to pay a fee
to the Mortgage Originator. The Originator charges the loan
lender a fee. Besides, in the case of Mortgage Originator,
you do not have any obligation to sign up for a loan. You
may only consult the originator. This is a great benefit.
The steps involved in the Mortgage Origination process are
as follows:
- You finalize the deal with the Real Estate Seller/
Agent
- The Agreement with the agent/seller is signed
- All information regarding the payment and kind of
loan financing are then sent to you and the Mortgage Originator
- The Mortgage Originator would then contact you along
with all possible options for mortgage financing based on
your requirements and needs.
- The originator would then assist you in choosing the
best mortgage loan option.
- Once you choose your option, the Originator would
then prepare all necessary documentation and forward these
to the Bank or Lender you have chosen.
- The Originator then monitors the entire loan approval
process giving your frequent feedback.
- The outcome of the approval process is then conveyed
to you. If the loan is approved, on your approval, the Originator
confirms this to the Bank.
- The Originator then discusses any legal requirements
and contacts concerned parties for obtaining the loan.
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Article Source:
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