Mortgage Loan Participants There are several basic categories of people involved: -lender
-broker/salesperson
-appraiser
-escrow/legal
-real estate agents
-counterparty
Lenders In Mortgage Loan If you work directly with a lender you usually work with a "lending representative". This can be the person who is sitting in the bank taking your mortgage application. They may be able to help advise you on what loans are right for you. This person is usually not the person who makes the decision on your loan. That decision is usually made by the underwriter. This is a trained professional who knows how to analyze a loan applicant and makes sure they satisfy the lender's requirements. Mortgage Broker This person serves the same function as the "lender representative" except they can shop your loan around to multiple lenders for the best deal. Appraiser This licensed professional issues an appraisal report about the state and worth of the property. The report usually includes a detailed assessment of the property, pictures, and a formal justification for what the property is worth. A lender will use this independent third party report to judge the value of the property. The lender usually reviews the appraiser's report and if they have questions will either adjust its value or ask for further clarification from the appraiser. Some lenders will also send their appraiser out to do their own appraisal or appraisal review. Escrow/Legal These are the people who handle the loan documentation paperwork and make sure the transaction is properly signed, notarized, recorded in property records, etc. This function varies from state to state depending on local laws. Real Estate Agents If the transaction is a purchase rather than a refinance then there can be both a buyer's and seller's real estate agent. Counterparty If this is a purchase than this is the other person on the side of the transaction. |
