Lending Education

Navigating your way through the home loan process can be daunting. Knowing what you’re getting into can help ease the anxiety. Here are some FAQ’s to help you understand what you can expect:

Lending education graphic

What is a mortgage broker?

In simple terms, a mortgage broker is a business that acts as an intermediary between consumers (either individuals or businesses) and lenders (such as a bank or mortgage company) for the purpose of securing a loan for the purchase, refinancing, or renovation of a residential or commercial property.

Mortgage brokers have business relationships with multiple lenders (in this case, “wholesale lenders”), which enables them to match the requirements of a particular consumer with a lender who can provide financing to meet that consumer’s needs.

What’s the difference between a mortgage broker and mortgage lender?

By contrast, a mortgage lender is typically a financial institution that provides money (in other words, loans) for transactions involving residential or commercial properties.  Some lenders work directly with consumers (called “retail lenders”), others market their products through mortgage brokers through their wholesale divisiosn, and some work both with consumers and through mortgage brokers.

What advantages may I have by working with a mortgage broker?

By partnering with multiple lenders, a mortgage broker can select from a wider range of loan programs than available to a loan officer at a bank or other financial institution and may be able to offer a loan at a lower price or on better terms. As independent businesses not affiliated with a particular lender, mortgage brokers are arguably in a better position to focus on and meet the needs of individual customers under wide-ranging circumstances.

If a chose a mortgage broker, what would the mortgage application process look like?

Here is a step-by-step breakdown of what you can expect:

Step 1: The mortgage broker will help you complete the initial application. The specific requirements will depend on whether you are looking to purchase or refinance your home, the type of home, whether you are looking to access home equity, and other factors. The mortgage broker will assist you in answering the questions listed in the application and in collecting the initial documentation needed to support your application (such as your recent W-2’s, if you have wage income).

Steps of Lending Process

Step 2

The mortgage broker will evaluate your credit.  With your authorization, the broker will obtain your credit report and discuss with you how your credit details may be evaluated by lenders in connection with your application. While the mortgage broker does not make the final eligibility decision (only a lender can do this), the information provided in the credit report will determine what loan programs may be available for your situation and whether the application process can move forward to the next step.

Calculator

Step 3

The mortgage broker will use the information provided in the prior steps to locate a lender and loan program that meets your needs.  The broker will discuss with you various options that may be available and help you select the loan terms that best meet your needs.

Visualization of finding a lender

Step 4

Once you have selected a loan and have made a decision to move forward, the mortgage broker will submit your application to the selected lender in order to seek approval.  The lender’s underwriter will evaluate all aspects of your application and, if it satisfies the lender’s requirements, will provide you with a conditional approval. You will receive a Loan Estimate which describes all important aspects of the loan before moving to the final step of the process.  The broker may lock the loan interest rate at this point in accordance with your instructions.

Piggy bank visualizing loan estimate

Step 5

In order to close the loan, the lender will order additional requirements, such as an appraisal of the subject property, which will require your continued assistance until the mortgage loan is fully approved. At that point, a closing can be scheduled and the administration of your loan will be set up so that the loan proceeds can be disbursed and you can begin to make payments on the loan.

Visualization of Appraisal

Why should I choose Numarc Mortgage?

Numarc Mortgage provides personalized service, guiding the customer through every step of the mortgage process, from application, to approval, and through closing. We aim to understand the customer’s situation, locate the best available loan product from among our multiple lending relationships, explain the options available, and work closely with all parties to close the transaction as quickly and painlessly as possible.

Let NUMARC MORTGAGE HELP YOU FINANCE YOUR HOME purchase or refinance

Contact us by using one of the options below to speak to a qualified loan originator. We will respond promptly and help answers any questions you have about our offerings and the mortgage process.