What Is a Mortgage Loan Originator, and How Can They Help You?

What does a mortgage loan originator do, and what types of assistance do they offer? Read this guide to learn about this role in the home-buying process.

If you’re considering buying a home, you’re likely concerned about what happens if you’re unable to pay your mortgage.

This is a reasonable concern. More than a quarter of homeowners on mortgage holiday said they didn’t know if they’d be able to pay once the grace period ended.

A mortgage loan originator plays an important role in determining your eligibility for purchasing a home. Read on to find out about how they can help you get an affordable home loan.

What Is a Mortgage Loan Originator?

Loan origination involves when you apply for a home loan and then receive a response from the lender. The lender then reviews, processes, and approves or denies your application.

Your mortgage loan originator—sometimes referred to as an MLO—is there from preapproval all the way to closing. MLOs work for banks, credit unions, and other lending institutions. 

What Is a Loan Officer?

This refers to a person who acts as a mortgage loan originator.

Loan officers often work for direct lenders, or they may be a mortgage broker partnering with different lenders in order to find the best loan for your needs. 

What Does Mortgage Loan Origination Include?

The loan origination process differs depending on the loan type, how much risk the lender would be taking on, as well as other factors.

For instance, a full documentation of the applicant’s income and assets is mandatory for some government-backed mortgage loans.

The mortgage loan origination process includes:

  • Loan shopping, or examining all the options available from lending agencies
  • Completing application forms
  • Submitting required documents verifying income, taxes, proof of assets, and debt load
  • Lender review of the loan application
  • Ensuring that the borrower understands the terms of the loan
  • Approval of the loan application
  • Disbursing the loan to the borrower

How Can a Mortgage Loan Officer Help?

For anyone in the home buying process—but especially for new homeowners—the process can be very confusing.

There is a wide range of fees that you will be charged when you buy a home. There are many different types of mortgage loans available as well, like variable and interest-only loans

You want to make sure that you can afford your mortgage. Being honest and upfront with your mortgage loan originator about your income, debt load, and financial history is an important first step. 

They will be able to tell you exactly how much you can afford. Never be afraid to ask your mortgage loan originator to run the numbers to see what your monthly payments will be. 

The average Australian mortgage for owner-occupiers is now $596,000. You want to walk into your new home feeling good about your ability to cover the mortgage. 

The bottom line is that a mortgage loan originator provides support to home buyers every step of the way through the loan closing. You want a qualified professional on your side, like those at huntergalloway.com.au

Find the Right Loan and the Right Home

If you’re starting to look at homes, it’s time to find a mortgage loan originator. They can answer all your questions about the process and get a loan approval that you can afford.

If you found this article informative, check out more of our blog’s real estate articles. 

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