What Does a Mortgage Agent Does?
A mortgage agent is a professional who brokers mortgage loans for individuals or companies. An agent works under the authority of a company that specializes in lending. Mortgage agents receive instruction from the lending company on how to qualify borrowers for loans. A mortgage agent also distributes information about mortgage rates and programs to potential clients. Some mortgage agents earn by collecting a percentage of the loan amount which is paid directly to the lender. Others earn through commissions from lenders.
A mortgage broker helps the borrower fill out the mortgage application form. It may appear to be a simple process but there are numerous things that the mortgage broker does during the application process. A mortgage broker ensures that the forms are complete and accurate. He explains the eligibility requirements, the lender’s rate of interest, the mortgage terms and any other conditions. The agent also checks the borrower’s credit and references to ensure that he/she is a good candidate for the mortgage.
There are two types of commission structures that a mortgage broker can earn through a brokerage firm. One type is a per-transaction fee, which is paid directly to the lender and the other is a fixed rate fee that guarantees a level of income from the transactions. Brokerages can also have variable commission rates and different levels of income from the transactions. There is also a common practice where commissions are shared between the lender and broker. This means that some companies may pay a lower commission than others.
Most mortgage brokers work by themselves or under a large mortgage company. Smaller firms rely on a network of mortgage brokers to get clients. Mortgage brokers can also work with online mortgage lenders and online financial institutions. Many brokers use their own websites to offer information about various mortgage products. Mortgage brokers can access customer files and information and make recommendations. Brokers can perform an array of tasks related to the mortgage industry such as loan application screening, loan inspection, lender referral and pre-approval work.
The main reason for a mortgage agent’s commission is the amount of business they get. The commission structure depends on the lender that the borrower has selected. If the lender the borrower has chosen is not licensed to do business in your state then the commission will be less. The mortgage agent can receive an annual performance bonus based on the lender’s performance. Some companies also pay mortgage agents a performance bonus based on the number of loans that the mortgage agent has approved.
Although there is no legal definition for the term “Mortgage Broker” it has been defined by the US Department of Housing and Urban Development (HUD). A mortgage broker has the responsibility to provide borrowers with accurate, timely and comprehensive loan information regarding the lender and the specific mortgage. The mortgage broker’s job is to negotiate with lenders and ensure that the borrower receives the best deal that they can. The role of a mortgage broker is very important to the housing industry since most mortgages are originated through brokers.
To qualify for a mortgage, a person generally needs to be eighteen years of age or older, hold a high school diploma or the equivalent, and be a citizen of the United States. There are several mortgage agents that do not need to be licensed. These mortgage agents may have working relationships with lenders, but they are not obligated to provide the same level of customer service that licensed agents do. Licensed mortgage agents may provide better loan information to potential borrowers and they generally have more connections to available financing than non-licensed brokers.
Mortgage brokers help homeowners throughout the home buying process by providing a plethora of services to make the experience as easy and stress free as possible. Real estate agents play a very important role in today’s market, which is why there are so many of them available today. With so many opportunities out there for mortgage brokers it is difficult to choose which one will be the best choice for you.