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Unformatted text preview: ndle the finance portion of his or her transaction. Equally important is making sure that the mortgage broker knows which loan programs to recommend to his or her clients. As many as 50 to 200 different lenders are available to each loan broker. However; most brokers concentrate on 5 to 10 specific lenders and work with only those loan pro–grams that these few lenders offer. The broker works on a regular basis with relatively few lenders and knows their programs well. Yet these limited offerings may not give consumers the best possible choices. Lenders typically specialize in only a limited number of programs. If the borrower fits into one of these loan packages well, both the lender and borrower benefit. However, if the borrower is mismatched with a loan that does not best fit his or her needs, the relationship is not good from the initial loan closing. A mortgage loan broker receives rate sheets from lenders on a regular basis or upon request. The broker should begin with the lenders with which they regularly deal. Ask for ALL the loan programs that these particular lenders typically fund. Then call other lenders and ask about their loan programs, to gain a broader range of loan types available for your clients. Not every lender handles every type of loan. A borrower may fit a particular program perfectly, but it may require the mortgage loan broker to do
Dynasty School (www.dynastySchool.com) 15-13 REAL ESTATE FINANCE
some extra work to find a lender who knows of the program or who handles a particular type of loan. Other criteria to review on selecting a lender with the various loan types include: What is the lender's ability to lock in an interest rate? What date or event will the loan rate tie to: application date, funding date, advertised rate? What loan points, fees, and costs go with which kind of loan? Will the lender give you references of other loan brokers who use this lender? What is the average time to close the loan once a processed loan is submitted? What loan terms and programs are available to the loan bro...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10