The Role Of A
Mortgage Originator
Bond originators or mortgage broker acts as an intermediary who sources mortgages on behalf of individuals or businesses. Traditionally, banks and other lending institutions have distributed their own products. However as markets for mortgages have become more competitive, the role of the mortgage broker has become more popular. In competitive mortgage markets many lenders use an array of rate offers and other incentives to attract customers. To many consumers, due to their infrequent purchases of mortgage products, the mortgage market may appear confusing and somewhat daunting. A bond originator can guide them through the process of selecting a suitable mortgage and offer mortgage and property related financial advice
For borrowers with poor credit records, or other unusual circumstances, finding a lender may be difficult. A bond originator, having specialised knowledge and multiple lending sources, will normally be a valuable resource in obtaining financing.
Mortgage brokers receive a fee from the banks and not their clients. The sheer volume of business provided by the mortgage originator to the banks, gives the originator negotiating power to muscle low rates for their clients. Usually the home loan process is much quicker when using a mortgage broker.
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Assessing the market to find a mortgage product that fits the clients needs at the lowest possible interest rate.
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Applying for a lenders agreement in principle (pre-approval) Gathering all needed documents (payslips, bank statements, etc.)
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Completing a lender application form.
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Explaining the legal disclosures.
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Submitting all material to the lender.
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The noticeable improvement in value of loans granted since the beginning of the year reflects the positive impact of 5 percentage points’ worth of interest rate cuts since late-
2008, banks responding to better environment with some relaxation in lending criteria, and a mildly improving economic growth performance.Fnb HomeLoans News
