What's the difference between a mortgage specialist and a mortgage lender
With the real estate market booming over the years, it's been crucial for people to understand what a mortgage is and the complicated terms associated with it. This article will shine some light on the key differences between a mortgage specialist and a mortgage lender.
Who are they?
A mortgage specialist is a person who finds and arranges mortgages for borrowers.
Mortgage specialists can be employees of banks, credit unions or mortgage lenders, but they can also be self-employed. Some mortgage specialists are paid by the borrower, some by the lender and some receive a commission from both parties.
On the other hand, a mortgage lender is a financial institution that lends money to borrowers. Mortgage lenders are responsible for processing applications, underwriting the loans and closing on them. The standards they use to evaluate and approve or deny an application vary from lender to lender and include factors such as credit score, debt-to-income ratio and cash reserves.
Are there any similarities between a mortgage specialist and a mortgage lender?
Even though the roles of a specialist and a lender are entirely different, there are some subtle similarities between the two. For example, both require a high level of professionalism and integrity. In fact, mortgage specialists and lenders are held to the same standards by their respective trade organizations.
Another similarity is that both are required to adhere to industry regulations. For example, in Canada, mortgage brokers and lenders must be licensed by the province in which they operate.
The Key Responsibilities of a Mortgage Specialist
The key responsibilities of a mortgage specialist wheel around finding you the best deal around - in most cases the best interest rate. Here are five key responsibilities of a mortgage specialist:
- Negotiating with credit lenders
- Analyzing and comparing different loan options
- Help clients with all the paperwork regarding their mortgage
- Act as an intermediary by communicating with lenders and borrowers.
- Ensuring compliance with provincial and federal banking, finance and tax laws.
Mortgage specialists can help you with more than just finding the best deal. The above responsibilities are just the beginning of what they can do for you. A good mortgage specialist will go above and beyond to find the right loan program, develop a plan to save on interest and fees, guide you through the approval process and help you secure a competitive rate.
Working alongside mortgage specialist Bonnie you can expect superior customer service, some of the lowest mortgage rates in Kelowna, from one of Canada’s leading lenders.
The Key Responsibilities of a Mortgage Lender
Mortgage lenders are mainly financial institutions that provide loans to borrowers who want to purchase a home. Their key responsibilities include, and are not limited to:
- Providing mortgage advice, including selecting the right type of mortgage product and helping you understand all the facts and figures involved in financing your home.
- Offering mortgage products, including different types of loans with varying features and benefits.
- Processing your application for financing (underwriting), which includes verifying your income and employment status before providing a quote for how much money they will give you to purchase or refinance real estate property.
- Managing the entire process from start to finish
- Performing a credit check
Similarly, mortgage lenders have more responsibilities than what is mentioned here. However, this is a good starting point for understanding the role of a mortgage lender.
Why you should choose a specialist over a lender?
The decision to choose between a specialist and a lender depends entirely on you.
However, a specialist has a competitive advantage over working directly with the lender. specialists are in direct contact with borrowers and lenders. Being on the front lines, they have a better understanding of what type of loan is best for you. And it's not just about getting the lowest interest rate or down payment requirements.
Moreover, a specialist will give you more flexibility when it comes to the type of mortgage you get. A lender, on the other hand, will only offer you a specific loan product that they have access to through their institution. In addition, a specialist can work with many different types of lenders and can compare rates and terms before deciding which one is best for you.
Conclusion
Both mortgage specialists and lenders can help you land your dream home. However, choosing to work with a specialist is going to save you time and money as finding you the best deal is our number 1 priority.
My name is Bonnie, and I am a mortgage specialist. I take pride in helping my clients find the best options for their mortgage needs. If you are looking for a low-rate, no-hassle experience, contact me today!
