Mortgage packets process mortgage applications, usually on behalf of mortgage brokers, to be submitted to the lender. The services they do include checking client credit files, instructing property ratings and checking apps according to the borrowing criteria. In return for providing this service, lenders will usually pay commissions to the pack, which will usually be shared with a mortgage broker. Packaging may occasionally negotiate exclusive mortgage offers with lenders that are not available directly to individual and small brokers, such as interest rate reductions or free property valuations.
Mortgage packets often work with a limited number of lenders, or specialize in a particular niche market. This expertise allows them to help mortgage brokers ensure applications are made to the right creditor and minimize the possibility of applications being denied before they are submitted. The services of mortgage package dealers are usually not directly accessible by community members.
Usually when a buyer submits a mortgage request, the buyer spends time filling out a mortgage application form with a mortgage broker. The mortgage application form is then sent directly to the lender on behalf of the buyer.
Once the creditor accepts the application and supports the document, they begin processing the applications they have received, this includes applying for the buyer's employer reference, accountant reference and mortgage appraisal.
With this process, the client runs the risk of the lender refusing the case if the lender is not happy with everything that has been presented to them, so the client should start the whole process again.
However, with mortgage package dealers, the case is assessed and borne before handed over to the lender, reducing the risk of rejection. If the application is no longer suitable for the lender in question, there is also the facility to redirect the application to a different lender without the need to complete a new application form.
Source of the article : Wikipedia
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