5.1 Mortgage Brokers and Lenders: Telling the Difference.
The lender or creditor is the party who 1)
disburses or provides funds to the borrower at the end of a
successful loan application process, and 2) receives the
note attesting the borrower's obligation to repay. The
mortgage broker, meanwhile, acts as an intermediary between the
borrower and the lender and serves as the applicant's main
contact throughout the process. The mortgage broker usually
receives a service fee from the lender for customer services
5.2 Loan application forms: Where to Find Them.
Most forms can be downloaded from a lender's
website. Fill out all forms accurately and completely, and
contact your lender for any questions or clarifications.
5.3 Documentation: Keeping your Papers in Order.
It is highly recommended to keep an organized file
containing both originals and copies of all documents
accumulated throughout the entire application process. These
2 years of W-2 forms from your
employer, or 2 years of tax returns for those who are
Recent pay stubs
3 months of bank and money market
Brokerage, mutual fund and
retirement account statements
Proof of other income sources
(alimony, trusts, rental income, etc.)
Credit card statements
Auto /boat / student / miscellaneous
Drivers' license or form of ID
Copies of visa or green card (for
Copies of existing mortgage debts
(for those applying for a home equity line of credit or
5.4 Underwriting: keeping in
touch. Underwriters, hired by lenders, are analysts
who examine all the data from a borrower's property and
transaction, and ultimately determine whether or not
mortgages should be issued to the applicant. Loan approval
committees will use underwriters' reports during their
deliberations to evaluate the property and the applicants'
creditworthiness. Your mortgage broker may contact you frequently in
the course of the loan application process, so prompt
communication is necessary to keep the process running