Brokers and
lenders: telling the difference
The lender or creditor is the party who
1) disburses or provides funds to the borrower
at the end of a successful loan application
process, and 2) receives the note attesting
the borrower’s obligation to repay.
The broker, meanwhile, acts as an intermediary
between the borrower and the lender and
serves as the applicant’s main contact
throughout the process. The mortgage broker
usually receives a service fee from the
lender for customer services rendered.
Loan application forms: where to
find them
Most forms can be downloaded from
a lender’s website. Fill out all forms
accurately and completely, and contact your
lender for any questions or clarifications.
Documentation: keeping your papers
in order
It’s highly recommended to keep an
organized dossier containing both originals
and copies of all documents accumulated
throughout the entire application process.
These will include:
• 2 years of W-2 forms from the employer,
or 2 years of tax returns for those who
are self-employed
• Recent pay stubs
• 3 months of bank and money market
statements
• Brokerage, mutual fund and retirement
account statements
• Proof of other income sources (alimony,
trusts, rental income, etc.)
• Credit card statements
• Auto / boat / student / miscellaneous
loans
• Drivers’ license or form of
ID
• Copies of visa or green card (for
non-US citizens)
• Copies of existing mortgage debts
(for those applying for a home equity line
of credit or another mortgage)
Underwriting: keeping in touch
Underwriters, hired by lenders, are analysts
who examine all the data from a borrower’s
property and transaction, and ultimately
determine whether or not mortgages should
be issued to the applicant. Loan approval
committees will use underwriters’
reports during their deliberations to evaluate
the property and the applicants’ creditworthiness.
Your broker may contact you frequently in
the course of this process, so prompt communication
is necessary to keep the process running
smoothly.
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