Finding yourself a good mortgage originator is one of the most important things you need to do before buying a home or refinancing one. This is because getting a home loan is probably the largest financial transaction you will ever make in your life, and you have to be more than prepared for it. 

Therefore, you need to have someone who will guide you through the entire loan application process and handle everything for you, including your prequalification.  

So, what exactly is a mortgage loan originator or an MLO?

A professional working at a bank or brokerage who walks you through the entire process of getting a mortgage, a mortgage originator acts as the middleman between you and your lender. They will guide you throughout the processing of getting a prequalification for your loan until closing. 

There are two common types of originators. One of these is the institution that works on your loan application and funds it at closing. Then, the mortgage broker will act as a liaison and hand over all your information and documentation to a lender who will fund your loan.

Usually, loan originators who work for banks offering mortgages are not required by law to get a license. However, they must still register as one. Those who wish to become a licensed mortgage professional can get their license from their respective provinces after completing at least one of the offered mortgage agent education programs.

What do mortgage originators commonly do?

As mentioned above, an originator will guide you from the start to the finish of the mortgage process. The first thing they will do is help you get your prequalification, determining the amount of money you are allowed to borrow. 

Next, they will ensure that you can pay your monthly mortgage dues. Then, once you have your prequalification, you can already look for a home and make an offer on one that is within your price range.

To establish your preapproval amount, an MLO will go through your finances as well as your creditworthiness. They will look into your assets, debts, and income and, from these, come up with the maximum amount you can borrow and actually pay. 

A good mortgage broker will tell you that you don’t have to borrow as much as the bank is willing to lend you. Your home loan is all about what you can afford to pay while still paying for your living expenses comfortably.

Loan originators who are after your best interests will guide you through all your mortgage options. They can help you assess whether a fixed-rate mortgage is the one for you or if you are better off with one that comes with a variable interest rate.

If it’s your first time buying a home, they could also assist you in availing yourself of the first-time homebuyer programs in your province.

How do you find a mortgage originator?

Although finding a mortgage broker is one of the wisest things to do in buying a home, it is not the first step you should take. Instead, you should assess your budget first and see if you are ready financially to buy a home. 

Keep in mind that housing expenses should not exceed 30% of your monthly net income. You should also still have at least six months of emergency savings in your bank account on top of the amount of money you need for the down payment and the closing costs. 

So, by the time you talk to lenders or a mortgage professional, you should already know how much you can afford. Once you know this, you can start getting quotes from at least three lenders or brokers. 

This will allow you to get a comparison of fees and interest rates. At this time, you can also get recommendations from family, friends, or colleagues who have already bought homes. Ask which lenders or brokers they had positive experiences with, so you can check them out as well.

What to look out for in a mortgage loan originator?

Before you decide which MLO to get, it is best if you consider several factors. First, as this professional will help you make a huge financial transaction, you should be assured that you are getting the best deal – not just in rates and fees, but also in traits and attitude.

As soon as you get your quotes from the brokers or institutions you were interested in, compare their fees and interest rates as these will differ from lender to lender. Look for the origination fee and check whether they are putting down discount points, decreasing your interest rate, but it will mean extra costs you need to pay upfront.

Once you already have a mortgage agent in mind, check out whether they possess the traits and attitude you are looking for in a person you would like to work with. Aside from their track record and knowledge of the market, you should also see if they are tech-savvy and flexible. You need to make sure that you can work according to your schedule and not only to theirs. 

You will also know if a loan originator has your best interests at heart by the way they communicate with you. They are willing to listen to you and explain the process as you go along in a way that is easy to understand. They should be interested in your goals and provide you with everything you need to make a sound decision. Finally, there should be a certain degree of comfort between the both of you as you will be working together in dealing with the complex process of getting a mortgage. 

Hiring a mortgage originator is a decision you should not make lightly. It needs a lot of work and research on your part. However, when you find the one in sync with what you want and need, you know that you are set to get the right kind of mortgage for your new home. You will see that you are in good hands and that making a huge financial transaction won’t be as scary as you first thought. 

For More Information, Contact:

John (Adam) Watson, CEO, CanCap Mortgage Group Inc. 

Email:   Tel: 416-452-5281