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Home Loan Process - Steps of the Process From Mortgage Company to Title Company

A Mortgage Company Greenville SC, also called a mortgage broker, is an organization engaged in the commercial activity of creating and/or financing mortgages for either residential real estate or commercial real estate. Typically, a mortgage company is responsible for originating the loan and all the steps necessary to submit it for processing to the lender's underwriting department. However, a mortgage company does not specifically provide the service of underwriting; rather, it sells itself to a potential borrower and seeks a loan from any of several customer financial institutions that provide that capital. In short, a mortgage company serves as a go between for a borrower seeking a loan and a lender providing that loan.
Mortgage companies can be banks, savings and loans, or credit unions. They can be general purpose companies that lend money on a variety of loans, including residential, commercial and debt consolidation loans. Mortgage lenders are subject to the oversight and regulation of the federal Home Mortgage Lender Board (HMLB), which is part of the Federal Deposit Insurance Corporation (FDIC). One of the missions of HMLB is to promote home mortgage loans through education and lending programs.
The originator (the lender) contacts various financial institutions to obtain a home loan for the residential property being used as collateral. The mortgage company then submits the application to the underwriter (the bank) for review. The underwriter will determine if the application is feasible under the current housing market conditions, and whether the risk of lending the funds is acceptable.
Generally, mortgage companies have very small loan inventory, usually no more than twenty or thirty loans. They generally originate and submit loans to banks, insurance companies and credit unions. Most banks and credit unions are happy to receive an application from a new business that wants to do business with them, but they may request additional information from the applicant. Many banks and other financial institutions to review such applications, but they perform a more intensive evaluation if the loan is from an "expert" or financial institution that is not generally known as a bank.
Typically, the first step in obtaining a mortgage loan from a mortgage company or an expert is to fill out an application, including important personal and financial information. This information is required in order to provide enough information for the mortgage lender to make an informed decision regarding the loan. The first step in this process is to shop around. Many mortgage lenders offer free quotes online, and many buyers to compare different mortgage lenders to select one that meets their specific needs. In addition, the Internet has made it easier for potential home buyers to shop online for mortgage insurance.
After the potential borrower makes an application to the mortgage company, a variety of loan officers will contact the potential borrower for further information. During this initial contact, the originators will interview the potential borrower about their credit, finances and current situation. Mortgage originators will review the borrower's application in order to determine if the mortgage company and borrower are a good match. The originators will also ask the borrower to provide a variety of documents, such as pay stubs, bank statements, W-2 forms, current address, utilities bills and more.
After the originators have reviewed each borrower's application and interviewed them, they will contact the potential borrowers via phone and/or mail. By this time, many different lenders will have offered loans to the borrowers. The next step involves the negotiations between the mortgage company and each borrower. Different mortgage companies have different ways in which they may negotiate repayment terms, down payment amount and closing costs.
The final step involves the actual paperwork, which is referred to as the Title Search Results. During this time, the title company will conduct a title search in order to verify the full ownership of the home. If the mortgage company and title company cannot locate sufficient proof of ownership, the home loan will be denied. The title company will submit its findings to the lender, and this allows the lender to make any necessary modifications. If all seems well with the Title Search, the borrowers should not need to re-apply for a home loan.
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