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Mortgage Broker In Denver – Roles And Responsibilities

Mortgage Broker In Denver – Roles And Responsibilities

Bob The Broker
Bob Friel
Published on June 26, 2024

Mortgage Broker In Denver – Roles And Responsibilities

Mortgage-Broker
While the roles and responsibilities of a mortgage broker are similar all over the USA, this post will focus on mortgage brokers in Denver, Colorado. It will help readers better understand the concepts related to mortgage brokers through live examples of a specific location.

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Definition of A Colorado Mortgage Broker

Mortgage brokers act as a bridge between mortgage borrowers and mortgage lenders but do not use their own funds to generate home loans. They are primarily the go-between, helping borrowers get the best loan product that aligns with their requirements.

A mortgage broker in Denver will do the running around, providing you with all the information about home loans in Denver and the paperwork required to easily get a mortgage loan. All the necessary documents will be collected from you by the mortgage broker and after processing, will be given to the lender for approval and sanction of a housing loan.

Verify my mortgage eligibility (Jul 16th, 2024)

For all the efforts put in, the broker earns a commission. It might be from the borrower, the lender, or both at closing.

The Work of A Mortgage Broker in Denver

As explained before, a Colorado mortgage broker, sometimes referred to as a mortgage advisor, is an intermediary between people looking for home loans in Denver and lenders. It might be to buy a new home or to refinance an existing one. The broker will present all the loan products and options of various lenders to the borrower while simultaneously qualifying the borrower to those lenders for a home loan.

Verify my mortgage eligibility (Jul 16th, 2024)

So, what is the workflow of a Denver mortgage advisor?

The first step is to gather all the financial data from the potential borrower to kickstart the mortgage loan application journey. The information collected includes income, debt, assets, credit history, employment particulars, and anything else that will help lenders assess the borrower's ability to get a home loan and repay it without default.

All this data is then processed by the mortgage advisor. An ideal loan amount is determined by the broker after considering the LTV (loan-to-value) ratio and which loan product will be ideal for the borrower. All this is next presented to the lender for approval and sanction of home loans in Denver. The broker remains constantly in touch with the borrower and the lenders during the entire process.

Verify my mortgage eligibility (Jul 16th, 2024)

After the loan is sanctioned and the transaction is completed, the mortgage broker in Denver collects a commission known as an orientation fee from the lender. This is compensation for services rendered. This amount is typically collected by the lender from the borrower in the closing statement. In some cases, a part of the total commission is paid by the lender.

We at Just Livin Realty work with Denver mortgage advisors who are experienced and have the right credentials. Once a real estate deal is finalized with us, or even for a pre-approved loan, we can refer you to a Colorado mortgage broker whom you can trust and who provides excellent service.

The Pros And Cons Of Working With A Mortgage Broker in Denver

Verify my mortgage eligibility (Jul 16th, 2024)

While working with a mortgage advisor might appear to you to be a sure way of getting housing loans in Denver, there are both pros and cons to it.

Pros

  • As a potential borrower, you save time and effort in finding the right lenders if you avail of the services of mortgage brokers.
  • You will be guided on how to avoid unscrupulous lenders who will not meet your requirements.
  • You will get access to lenders who otherwise would not be known to you.
  • Mortgage brokers offer financial savings incentives through better loan rates and fee waivers.

Cons

Verify my mortgage eligibility (Jul 16th, 2024)
  • You might get better terms from some lenders if you contact them directly instead of through a Colorado mortgage broker.
  • You save on fees for mortgage broker services by directly approaching a lender.
  • Not all lenders work through mortgage brokers in Denver. Hence, you could miss out on a lender who provides attractive rates of interest and easy terms.
  • A Denver mortgage advisor having a conflict of interest is not uncommon. They might direct you to a lender who pays them a better commission instead of those who will match your needs perfectly.

Hence, before choosing a mortgage broker to get housing loans in Denver, consider the above pros and cons before coming to a decision.   

Difference Between A Mortgage Advisor and Loan Officer

It is necessary here to clear the air about the differences between a Denver mortgage advisor or broker and a loan officer. We have explained and gone through the roles and responsibilities of a mortgage broker in Denver so let us dive into what a loan officer is.

Verify my mortgage eligibility (Jul 16th, 2024)

A loan officer works in a single bank or credit union and is therefore the first point of contact when a borrower approaches a lender directly for a home loan. A loan officer offers products, programs, and interest rates of a single lending institution only. On the other hand, a Colorado mortgage broker finds the interest rates and terms from multiple lenders and suits one that best fits client needs.

Further, a mortgage broker works with many clients at a time and several lenders. If a loan gets declined by a lender, the broker can move on to another to get it sanctioned. However, if a loan originated by a loan officer gets declined, no further action can be taken either by the bank or the officer. The borrower has to personally go looking for another lender.

Summing Up

Verify my mortgage eligibility (Jul 16th, 2024)

A mortgage broker in Denver matches potential home loan seekers with lenders, offering borrowers the best loan products, terms, and interest rates that match their needs. Apart from the time and effort saved by borrowers from not having to rush from lender to lender, they also save substantial amounts on mortgage payments due to easy terms.

Hence, as an aspiring homebuyer looking for good mortgage rates, do your research well before selecting a Denver mortgage advisor. Check the reputation, services offered, mortgage broker costs, and benefits before enlisting a broker rather than trying to get a mortgage yourself.

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