A residential mortgage loan originator is an entity that, for monetary compensation or reward, or at least in the hope of monetary compensation or reward, takes out or negotiates terms of a residential mortgage loan. They are usually independent financial consultants who work on your behalf to find you the best loan option based on your needs and financial situation. Sometimes they will work for loan companies directly. Sometimes they will act as representatives of more than one lending company and sometimes they will be representing a syndicate of lenders. In any event they are brokers in a highly specialized field dealing with mortgages.
The most important reason to use a residential mortgage loan originator is to find the right loan for your needs. A residential mortgage loan originator has an objective assessment of your financial situation that is free from emotion. If you go to a bank or a credit union for a quote, you will be getting a product from a salesman whose goal is to get you to sign on the dotted line. Your Residential Mortgage Loan Originator will be working in your best interest. He will take into account your budget, your income potential, your credit history and other considerations before he gives you an offer.
Their job is to negotiate terms of the loan with the lender on your behalf and they will do their best to keep the monthly payment as low as possible. They also will try to secure the lowest possible interest rate when they present you with your offer. The residential mortgage loan originators have the experience necessary to make sure that you don’t fall into any trap and that you don’t fall into default with the lender. They also have the contacts necessary to make sure that your deal is acceptable to the rest of the mortgage world.
You will need some clerical tasks done for you by the residential mortgage loan originators. These clerical tasks are not as easy as saying completing surveys but it is not as difficult as applying for the wrong number of free government grants. Your residential mortgage loan originator will have to get your information organized in a way that makes it easy for you to fill out the application forms and submit it to the lender for consideration. He or she will have to organize all your financial statements in a manner that makes it very easy to read and understand. In short you will need some basic accounting skills for the clerical tasks that will be required of you.
When you contact the mortgage broker for the lender, tell them that you will be using a residential mortgage loan originators to handle your loan needs. Tell them in detail what your requirements are and they should be able to provide you with some suggestions. Tell them also that you will be approaching the broker as your mortgage broker and not as your personal assistant. This will make things easier for you and the broker too since your needs will be different. If you are comfortable with handling your own financial business then you can skip this step and contact your lender directly.
After you have told the residential mortgage loan originators that you will be using a real estate broker as your mortgage agent, you will have to negotiate terms. This is where the real estate broker comes in handy. The broker has contacts with agents from various lenders and so negotiating terms can be done easily. To make things go smoothly and before you even try to deal with the lender you need to ask the broker for a list of contacts. The contact list will make it easier to negotiate with the lender and reach good terms.
Once you have the list of agents, the next step will be to inform them that you will be hiring a residential mortgage loan originators to help you out with the negotiations. Tell them that you would like them to represent your interests and show them how knowledgeable they are in the field of real estate financing. When you tell them that you will be hiring a broker and not use a real estate agent they should already know about this. A lot of agents are actually unaware that a mortgage broker can be a great help in the negotiations and so they may be more willing to negotiate terms. You can also let them know that your broker will be negotiating on your behalf and thus he can be a bigger factor in getting the best terms possible.
After getting your quotes and terms the next step will be to look at the fees that the mortgage companies would charge for the service that they are offering. You need to make sure that the fee charged by the companies is equal to or less than what a real estate agent would charge. You should also check if the companies are licensed to do business in your state. Make sure that all of your information is correct and that you informed the mortgage loan originators everything that needed to be known. You should also keep in mind that with a licensed mortgage broker you can always have someone else work on your account while you handle the paperwork and the negotiations.