Real Estate Agencies And Mortgage Lenders? How This Typically Works
Posted on: 20 June 2018
As a consumer, you often receive strange flyers in the mail. Some of them are just downright bizarre. Others are weird, such as a real estate agency offering you mortgage options. How does that work? It goes something like this.
The Group Are Brokers, Not Agents or Realtors
Real estate brokers are able to point you in the direction of various properties to view, but they also have the capacity to find you mortgage lending solutions. They themselves are not lenders either; they are merely licensed to draw up your paperwork and send it off to an investment firm, an actual money lending firm, or a banking institution. Brokers can do a lot of things that agents and realtors cannot, and finding you lenders is just one of those things.
The Brokers Use Real Estate Loan Origination Software System
The brokers use special software that narrows down all of the possible lenders that might work for you. Once you have selected a property that you want to purchase, the broker heads into this software to see who will back your purchase with the funds you need to borrow. Then the software helps create all of the necessary documents you need to borrow from that lender or lenders. You can sign physical paperwork to fax to the lender, or you can e-sign, depending on the lender with which you decide to work.
Money Is Transferred to Either the Broker or the Seller
The money you borrow never enters your hands. Instead, the money is sent to the broker who will finish brokering this transaction, or the money goes directly to the seller with a copy of the purchase contract. If and when possible, choose the former. It makes all transactions of sale much simpler and more fool-proof if the money comes to the broker first and to the seller second. If you or the seller decide to back out of the purchase, then there is no messy business with attempting to retrieve the funds that were wired into the seller's account.
Your Account with the Lender Is No Longer Handled by the Broker
Once your real estate purchase is complete, the broker and his/her part are finished and complete. Instead of coming to the broker's office to pay, you pay this lender every month. Issues with your account are addressed directly with the lender. The real estate broker has no further connections or dealings with you.
For more information on using a real estate loan origination software system, contact your local brokers.Share