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| Mortgage originators find loans |
What services do mortgage originators offer?
• Assist
you in finding the best mortgage loan / bond for your particular
circumstances
• Provide advice on mortgage loan rates and mortgage products and lenders in the market
• Ensure that all documentation required by banks / mortgage lenders are completed correctly reducing any possible delays due to missing information etc
• Provide guidance as to how much mortgage loan / bond you could qualify for
• Liaison with banks and mortgage lenders ensuring a quick turnaround in the approval process.
• Provide advice on mortgage loan rates and mortgage products and lenders in the market
• Ensure that all documentation required by banks / mortgage lenders are completed correctly reducing any possible delays due to missing information etc
• Provide guidance as to how much mortgage loan / bond you could qualify for
• Liaison with banks and mortgage lenders ensuring a quick turnaround in the approval process.
How are mortgage originators paid?
Mortgage
originators get paid commission by banks / mortgage lenders for each
successful application that they refer. The commission paid by the
banks averages 2% of the mortgage / bond amount – the actual amount
varies from bank to bank.
Using
the services of a mortgage originator does not add to the costs of
the bond as banks have been able to reduce costs in their home loans
divisions thanks to mortgage originators doing a lot of the back
office administration themselves. So it’s a win –win scenario for
everyone, the banks reduce their costs, the originator earns
commission and you get the best mortgage deal.
Be
wary of using the services of a mortgage originator who charges a
raising fee in addition to the commission paid by the bank / mortgage
lender.
Advantages of using a mortgage originator
• Less
paperwork, many mortgage originators submit the applications
electronically to the banks / mortgage lenders
• Apply at more than one bank / mortgage lender
• Quicker turnaround time in the approval of mortgage loans / bonds
• Cash back / reduced bond registration, many innovative originators provide a cash incentive or a reduction in your registration costs.
• Apply at more than one bank / mortgage lender
• Quicker turnaround time in the approval of mortgage loans / bonds
• Cash back / reduced bond registration, many innovative originators provide a cash incentive or a reduction in your registration costs.
Pitfalls to avoid in dealing with a mortgage originator
Mortgage
originators can make the mortgage application process much smoother,
however there are still unscrupulous operators masquerading as
mortgage originators and the following pitfall should be avoided.
• Deeds
of sale that force you to use the mortgage originator/conveyancer
specified by the developer/agent. Insist on appointing your own
mortgage originator.
• Be wary of originators that charge a raising fee, mortgage originators earn commission from the banks and shouldn’t charge you an additional fee for their services.
• Be wary of originators that charge a raising fee, mortgage originators earn commission from the banks and shouldn’t charge you an additional fee for their services.
In summary, a mortgage originator finds the mortgage loan that is most suitable to
the needs of the borrower and also takes care of the many
administrative and form filling tasks involved in the mortgage loan
application process. That is what you are paying them to do, mortgage
originators earn a commission from the bank, however you as the
client always end up paying. Be wary of mortgage originators, who
charge a fee in addition to their commission, this practice is
unethical. Remember
that only applications with a high success rate of being approved
will be send by the mortgage originator to his processor.
About the author: David
works for a financial services provider that can find you a find you a personal loan online. Their product also includes a 24 month legal and ID assist
plan plus a credit status report.
Image license: Nikcname, CC BY 2.0
Image license: Nikcname, CC BY 2.0
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