Are you seeking a mortgage loan, mortgage broker, or mortgage lender in Erina?
Whether you’re seeking a forever home or investment property (or both), you’ve come to the right place. CoastFin lives, eats, sleeps, and breathes home loans.
The mortgage process is rife with challenges–but these challenges can all be overcome by following the correct steps.
As such, the main obstacle you face is knowing the appropriate processes and steps to get approved for your mortgage loan.
One of the more critical steps of mortgage approval is finding a mortgage broker (or loan officer) to help you get approved. Below is a detailed guide to finding and hiring the right mortgage broker.
Mortgage loan officers and mortgage brokers have many similarities and often perform many of the same functions. However, they aren’t necessarily the same thing.
Here’s a breakdown of the differences between these two mortgage loan facilitators:
What Is A Mortgage Loan Officer?
A loan officer represents financial institutions like banks and credit unions. They assist their clients–prospective borrowers–in the application process.
Loan officers are typically referred to as mortgage loan officers since mortgages are the most comprehensive and costly loan type. These loan facilitators provide other services to consumers and small business owners (e.g., secured/unsecured) loans–but mortgages tend to be their bread and butter.
A loan officer must have extensive expertise in the following areas:
- Banking industry rules and regulations.
- Lending products.
- Required documentation to obtain a loan.
When borrowers and loan officers work together, the loan officer passes the borrower’s application to the given institution’s underwriter. The underwriter determines the prospective borrower’s creditworthiness. The loan officer then must prepare the appropriate loan closing documents after approval.
Commissions apply to some loan officers–this prepaid rate can be negotiated.
Note that big banks work exclusively through their designated loan officers.
What Is A Mortgage Broker?
Mortgage brokers are matchmakers. They can connect potential borrowers with a broad range of financial institutions to offer lending options from credit unions, banks, and mortgage lenders.
A mortgage broker assesses borrowers’ financial circumstances and provides mortgage-based solutions based on those details. Brokers also gather a borrower’s paperwork and hand it to a lender to underwrite and approve.
Working with a mortgage broker will save you from many headaches in the application process. Also, a broker (especially a high-performing one) will find a loan that saves you money over the loan’s lifespan.
Many lenders work exclusively with mortgage brokers, offering a broker’s clients loan access that otherwise wouldn’t be available.
Mortgage brokers can also get lenders to waive the following fees:
- And more!
Not all mortgage brokers in Erina (and elsewhere) are created equal, though. Top brokers will gain access to institutions that can best satisfy their client’s needs. However, brokers don’t obtain this access automatically–developing these relationships requires legwork and expertise. So, due diligence is necessary for finding the top Erina mortgage loan broker.
Note that commissions apply with mortgage brokers, who’ll take what’s referred to as a commission fee. This typically amounts to 1% to 2% of the loan amount.
Since mortgage brokers are licensed specialists, they must disclose their fees upfront.
The Primary Differences Between A Mortgage Loan Officer And A Mortgage Broker.
Below is a bulleted list of differences between loan officers and mortgage brokers:
- Obtaining a mortgage loan through an officer means working directly with the money-lending institution. Mortgage brokers are third-party service providers. A broker won’t directly lend you money. Instead, they facilitate the lending process between borrowers and institutions.
- Loan officers are limited to the loans offered by their employers. Whereas mortgage brokers work with a vast array of lenders. This differentiating factor allows brokers to explore every avenue to get you the best deal.
- Applying through a loan officer means you could receive a break on closing costs and rates since they are employed by the lender. You could receive exceptions based on your unique financial circumstances and income. Plus, you can gain access to the down payment assistance programs these lenders offer (if you’re eligible). Working with an officer means your approval will be managed internally or “in-house” by the institution lending you money.
Is It Riskier To Work With A Mortgage Broker Instead Of A Mortgage Loan Officer (Or Vice Versa)?
There’s no more risk in working with a mortgage broker instead of a mortgage loan officer (or vice versa).
Loan officers and mortgage brokers are both classified as mortgage loan originators. They’re required to meet strict federal requirements to facilitate mortgage loans.
Is It Better To Work With A Mortgage Broker Or Mortgage Loan Officer?
The answer to the above subheader is at the crux of this article. A crucial part of finding the right mortgage broker or loan officer is knowing which of the two mortgage facilitators works best for you.
A loan officer’s mortgages and rates will be more rigid and based on their employer’s offer. However, if you tick the necessary boxes, you might benefit from favourable terms and a more streamlined lending process.
Mortgage brokers work with a variety of lenders and can present more options for potential borrowers. This makes it likelier to find a mortgage with terms more catered to your needs since your broker can explore a broader range of mortgage lending products.
Does that mean a mortgage broker will automatically be better than a loan officer? Not necessarily.
A high-performing mortgage broker–like those who comprise our team at CoastFin–will have access to a diverse range of mortgage loans. Typically, this advantage means we can offer potential mortgage borrowers far more flexibility and agility than a loan officer.
That said, not all mortgage brokers in Erina have our relationships with financial institutions and mortgage lenders. So, due diligence is a must–and reading our article is an excellent first step in finding your ideal mortgage broker or loan officer.
Help Your Mortgage Loan Facilitator Help You
We understand the urge to remain hands-off in the loan application process. You want to leave everything to the experts because it can all be highly intimidating and daunting.
However, additional legwork is necessary to optimize your long-term finances and find the most favourable mortgage terms. The more independent research you perform on what’s available to a borrower with your specific needs and circumstances, the easier it’ll be to find the best broker or officer.
When you’re informed and know what you want, you provide your mortgage loan facilitator with the details that help them serve you best.
The required research can take on many shapes and forms. Scouring the internet about available mortgage loan products in Erina will help. Ensure your sources are reliable and have proven track records. This way, you’ll garner valuable insights that foster a fruitful borrowing experience.
Additionally, don’t be afraid to shop around. Just because you speak with a mortgage broker doesn’t mean you have to sign the dotted line on an application. Talk to multiple brokers or officers about their available loans and terms until you find something that makes sense.
Undoubtedly, patience will be a virtue here–but knowledge is power. Being active instead of passive in the borrowing process will help you find the right mortgage broker/officer to give you the most ideal loan.
Mortgages involve more money than most people are used to dealing with. As a result, it’s easy to get lost in the numbers and forget that it’s people who are applying for these loans.
Thus, finding a mortgage broker or loan officer who embraces the human element of these transactions is integral.
Someone who fails to appreciate the human aspect of loans can be prone to filing applications that get rejected. Or–even worse–such an individual can get you approved for a loan with terms that do more harm than good.
It can be a significant game-changer when a mortgage broker or loan officer excels in the human component of mortgages.
For instance, you could apply for a mortgage when you work full-time, part-time, or are self-employed.
A mortgage breaker who puts people first will consider your current employment circumstances through each step of the process. It won’t be about getting you approved ASAP just to tick a box. Rather, the focus will be setting you up with a mortgage that offers you security for years to come and can mesh with your employment circumstances and income.
Partner With An Erina Mortgage Broker Who Excels At Providing A Personal Touch
At CoastFin, our clients are cherished members of our community and our neighbours. They aren’t commission cheques to cash or quota boxes to tick.
Contact us today if you’re seeking an Erina mortgage loan and want to work with brokers with the most customized, personalized approach.