To purchase a property the most common way a homebuyer or real estate investor uses is through a mortgage.
Whether they go to a bank, mortgage broker, or building society they would be dealing with a mortgage consultant, or mortgage adviser, at some point or other.
A mortgage consultant helps people in determining what mortgage is best for their particular needs.
A mortgage consultant guides homeowners in understanding the various mortgage products available to them and also helps in simplifying the mortgage process and getting approved for a mortgage.
Let us learn more about what a mortgage consultant does, how they differ from a mortgage broker, and who should work with a mortgage consultant.
A mortgage consultant helps the borrowers to identify the best loan product according to the borrower’s specific needs.
They can offer, explain, and compare the different loan products available in the market and based on the borrower’s financial situation help them identify the best loan product, by looking at the amount of down payment, debt-to-income ratio, credit score, or the type of property that is being purchased.
With this information the mortgage consultant shops around to secure the best interest rate and loan terms for their specific needs.
We need to know that a mortgage consultant is not the same as a mortgage loan originator.
The consultant doesn’t create and underwrite the loan instead they just help move the loan process by working directly with the loan officer.
A mortgage consultant’s job is to first help the borrower to choose the right loan program, go through the process of a loan application, and finally help them get past loan approval to closing.
A mortgage broker works with only one lending institution, whereas an independent mortgage consultant works with multiple lenders, so they have more choice of loan products that a borrower can choose from according to their financial goals and needs.
A greater variety of products and wider and more diverse mortgage lender reserves are available to the mortgage consultants when they work with a broker agency.
The range can include a new loan origination or refinance of an existing loan on a home.
For their services, the mortgage consultants get paid a fee, which is a percentage of the total loan amount.
The payment needs to be done only when the loan is closed. Depending on the specific agent the borrowers are working with the fees will vary and could range between 1% – 3%.
This amount should be disclosed by a mortgage consultant through a contract when the relationship begins, and if the loan is approved then it should be detailed on the closing statement.
The borrowers are responsible for paying the fee, but many times the fees get added into closing costs and paid at closing, or sometimes it can be rolled into the loan amount and paid by the lender at closing.
Mortgage consultants are not needed for everyone. If a home buyer or an investor is going with a conventional loan a mortgage consultant may not be worth the cost.
But if they’re looking to use alternative loan programs, such as commercial real estate, or they want to get a specialized loan program, having a mortgage consultant can be helpful and will reap major savings.
By shopping around and using the mortgage consultant’s expertise and knowledge about the availability of different programs and loan options, over time a home buyer or an investor can save thousands of dollars on their loan costs.
In order to help customers with their mortgage application mortgage consultants work with and on behalf of customers.
A mortgage consultant can help you to narrow down the best loan option.
The ideal way is to shop around and make sure to find the right consultant, who can keep the best interest and needs of a borrower as their priority along with having the experience and knowledge.
Are you considering becoming a mortgage broker or a mortgage originator? The opportunity is a great one because you don’t have to have any kind of advanced degree.
Anybody can test for the license and become a mortgage broker or a mortgage originator.
It is very simple to become a mortgage broker, however, that doesn’t mean it is easy.
This provides an opportunity for all people irrespective of their gender or race to get into a professional career where you are doing significant work for people helping them get into a home.
In this post, we will understand how to become a mortgage broker in Texas.
When you are looking for a mortgage you have two choices, one, you can go to the lender directly, and two, you can use a mortgage broker.
A broker is a middle person between you and the lender whose sole purpose is to get the best mortgage or refinance deals for you from the list of lenders the broker is associated with.
If you have just thought about becoming a mortgage broker, you might be surrounded by many queries about how to get success in becoming a top-class mortgage broker.
You may need to know the requirement to become a licensed mortgage broker to start your business.
Let’s jump into the step by step guide on how to be a mortgage broker in Texas.
No matter which state you are planning to start your mortgage brokerage, your mortgage broker firm needs to be licensed.
Before applying for the license you are required to complete a pre-licensure program.
This 20-hour program will help you learn about federal and state laws along with financial regulations in regards to mortgages, loan officers’ behaviors, and more.
These programs are administrated by the National Mortgage Licensure System (NMLS).
You can also visit their website to get more information on the licensure program at your location.
Once you complete your pre-licensure program, you must attend and pass the SAFE Mortgage Loan Originator Test.
This is a nationalized test common for all the applicants and is administered by NMLS.
This test will test your knowledge and understanding of mortgage practices and state-specific guidelines and regulations.
To get a license as a mortgage broker you need to pass both federal and state portions with a minimum score of 75%.
Once you complete and pass your test, you now need to register your mortgage brokerage firm.
The requirement for registering your firm may depend on the state that you are planning to start your business.
They may require your business name, employer identification number (EIN), and your type of business. For example, LLC, C or S Corporation, Or Partnership.
Your state licensing authority will help you register your business using these details.
Pick your location for business and establish your clients and lenders accordingly.
If you don’t have any references you may want to start working at a brokerage firm and then make your way into the business as an independent mortgage broker gradually.
Once you are all set for business, you now have to get partners on board to ensure you never miss a business opportunity and you never run out of clients.
You may need to build relationships with local real estate agents, title companies, lenders, insurance agents, etc.
It is beneficial for you to have these partners as you can help them grow their business along with yours.
With the Title companies and insurance agent, you can provide alternatives to your clients and help them do a fair comparison in the market as these are services that the borrower can usually shop for during a refinance or a home purchase.
Being a mortgage broker in Texas can help you achieve your financial goal as you can gain wealth if you follow the right path.
As a mortgage consultant, you get to help people to process the loan from start to end. The cost of becoming a mortgage broker is not high.
The time is great for the mortgage industry, and if you are selecting a mortgage broker as a career path, this might just be the right time for you.