![\"Who-In-Mortgage\"](\"https:\/\/www.movoto.com\/foundation\/wp-content\/uploads\/2016\/04\/Who-In-Mortgage.jpg\")
<\/a><\/p>\nThe financial institution that will be loaning you the money for your home. They range from large multinational banks like Bank of America, HSBC, and Wells Fargo to small, boutique-style lenders and credit unions. Note that many lenders will sell your mortgage to another bank or mortgage servicer after you close (Learn more about what happens when your loan is sold in the When Your Loan Is Sold section).<\/p>\n You can choose to work with a mortgage broker\u2014someone who doesn\u2019t necessarily work for a specific bank or lender. Most brokers work with several financial institutions, so they can compare and contrast different loan types, interest rates, and help you weigh the benefits and pitfalls of going with different lenders. Think of them as a lender matchmaker. A mortgage broker will ask you a few questions about your goals and your financial situation and will advise you on the lender, rate, terms, and points to get the best deal for your budget. They\u2019ll also put together the necessary paperwork to process your loan and hand it off to the lender to get approved. A mortgage broker must be licensed in their state with the Nationwide Mortgage Licensing System & Registry (NMLS)<\/a>.<\/p>\n Pros: <\/b>You get to choose from a group of different lenders to fit your needs (make sure your broker is giving you a variety of options and explaining the benefits and pitfalls of each). A loan originator or officer works for a specific lender. They will also consult with you about options for your loan, but only within the scope of what their bank offers. Once you decide on a loan, they\u2019ll process it for you. You can choose to work with a mortgage broker first who will match you to a lender or go straight to a lender you\u2019ve researched and found yourself. Once you\u2019ve chosen a lender, you\u2019ll deal exclusively with their loan officer.<\/p>\n Once your application is complete, your file goes to an underwriter. The underwriter verifies all your information and documents and makes sure you and\u2014once you\u2019ve found it\u2014the property qualify for the loan. This includes verifying your employment, reviewing your credit history, reviewing the appraisal, and finding any errors or omissions in the closing documents. Ultimately, it\u2019s the underwriter\u2019s call on whether the loan will be approved. You don\u2019t deal directly with the underwriter, so if they see any mistakes or red flags, they\u2019ll go back to the loan officer to relay the information to you.<\/p>\n Technology means that you more and more, buyers are choosing to forgo an underwriter altogether. Fannie Mae and Freddie Mac have developed two automated underwriting programs that use computers to accurately and objectively evaluate a candidate\u2019s creditworthiness. Fannie Mae\u2019s Desktop Underwriter (DU) and Freddie Mac\u2019s Loan Prospector (LP) both assess a borrower\u2019s credit risk and whether they meet their loan eligibility requirements. Automated underwriting can also be used for pre-approvals, but they\u2019re usually done after you\u2019ve solidified a purchase contract.<\/p>\n<\/a>To better understand how mortgages work, learn the players involved in securing a mortgage at every step.<\/p>\nLender<\/h3>\n
Mortgage Broker<\/h3>\n
\nCons:<\/b> You might have to pay them a fee as part of your closing costs. Be sure to ask if their fee goes to you or the bank.<\/p>\nMortgage Loan Officer (Originator)<\/h3>\n
Underwriter<\/h3>\n
Automated Underwriting<\/h3>\n
![\"Hombeuyers-Guide_button\"](\"https:\/\/www.movoto.com\/foundation\/wp-content\/uploads\/2016\/05\/Hombeuyers-Guide_button.jpg\")
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