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Understanding The Different Types of Mortgage Professionals

Unless you have applied for a mortgage before, you can easily be overwhelmed by the many types of mortgage professionals available. For example, common terms you would encounter in your home-buying research include mortgage loan officer, outsource banker and rejected mortgage loan specialists.

At first glance, they may seem similar, but each of them has distinct roles. Therefore, it is essential to understand the different types of mortgage professionals so that you can select the one that can help you apply for a mortgage.

In this article, we’ll go over what are mortgage loan officers, outsource bankers and rejected mortgage loan specialists. Plus, we’ll outline their advantages and disadvantages so that you can understand how each one can help you secure financing for a home.

Mortgage Loan Officers

A mortgage loan officer is a licensed official of a credit union, bank or financial institution who helps borrowers in the mortgage application process.

Mortgage loan officers must be highly well-versed with many different types of lending products, as they work with a variety of consumers and small business owners.

Moreover, they have a comprehensive knowledge of the banking industry’s rules and regulations and the required documentation to obtain a loan. This is because they will only approve the customer’s loan application if it meets the bank’s standards.

What Do Mortgage Loan Officers Do?

The primary responsibility of the mortgage loan officer is to act as an advisor for the borrower. However, a mortgage loan officer’s job description varies from lender to lender.

Other responsibilities of mortgage loan officers include:

  • Checking the information on your loan application
  • Collecting documents to support your loan request
  • Helping you negotiate the best mortgage terms based on your finances

Advantages & Disadvantages of Working With A Mortgage Loan Officer

The main benefit of working with a mortgage loan officer is that they help their clients with their loan application process and are familiar with the loans offered by their financial institutions. Moreover, you will not have to pay for their services.

Unlike mortgage brokers, a mortgage loan officer does not compare financial options between institutions. Instead, they focus on helping borrowers find a loan product from their bank or financial institution that they qualify for and can afford.

They also know the banking industry’s rules and how these rules will be applied to each loan application. However, as loan officers serve a particular institution, they can only offer available loans and mortgage rates of that financial institution.

Read More: Saving for Retirement Malaysia: How Refinancing Your Mortgage Can Help

Outsource Bankers

Outsource bankers are third-party mortgage or loan processors responsible for preparing and processing your loan application documents before it gets approved by the loan underwriter.

They play an important role in getting your mortgage loan request to the final close. However, unlike a mortgage loan officer, an outsource banker is not employed by a bank or financial institution.

What Does An Outsource Banker Do?

An outsource banker offers services similar to the previously mentioned mortgage professionals. They guide the borrower through the loan application process and will set up the borrower with the proper documents for the loan programme they want to use.

Below are several other responsibilities an outsource banker has:

  • Collecting, verifying, and following up on supporting documents
  • Analysing your credit report
  • Working with the loan underwriter

Benefits of Working With An Outsource Banker

1. Access To Industry Experts

One of the benefits of working with an outsource banker is that you can access diverse experts across the mortgage industry.

An outsource banker can contact loan officers from various banks to discover which banks will or will not approve their client’s loan application documents.

2. State-Of-The-Art Technologies And Tools

An outsource banker has access to effective automation technologies in the market, from artificial intelligence to chatbots.

By working with an outsource banker, you can leave it to them to improve your loan processing quality, time, and costs with their advanced technologies and tools.

3. Meet Regulatory Compliance

You can also benefit from guaranteed compliance if you leave your loan to outsource bankers. This is because they have the resources to manage compliance requirements without running into any obstacles in the process.

Drawbacks of Working With An Outsource Banker

Similar to the other two mortgage professionals in this article, you will have to pay a outsource banker for their services once your loan application is approved.

It’s also important to understand that they come with risks as well. For example, with an outsource banker, you may experience the following:

  • Confidentiality and security issues as your data may be at risk due to the lack of control you have over your systems
  • Lack of flexibility as the contract could be too rigid to accommodate change
  • Instability as the outsourcing company could go out of business

Rejected Mortgage Loan Specialists

A rejected mortgage loan specialist acts as an intermediary between someone who wants to buy real estate and those offering loans to do so. They do the same job as the two mortgage professionals listed above, except that they are independent of a bank or financial institution and have knowledge of mortgages offered by a variety of lenders.

Moreover, a rejected mortgage loan specialist is connected with many different lending institutions and understands the financial services they all offer in order to find the best loan for each borrower.

What is the Role of a Rejected Mortgage Loan Specialist?

Working with a rejected mortgage loan specialist can save you time, effort, and money. Their responsibilities include:

  • Negotiating with banks and credit lenders to find the best loan solution for their clients
  • Assisting with documentation
  • Overseeing the financing process
  • Ensuring compliance with banking and financial legislation

Benefits of Working With A Rejected Mortgage Loan Specialist

1. Access To A Broad Range Of Mortgage Loans

A rejected mortgage loan specialist offers a wide range of mortgage loans from many different lenders. The wider their network, the better your chances of obtaining the loan and interest rate that best suits your needs.

2. Finds You The Most Advantageous Deal

A rejected mortgage loan specialist represents your interests rather than the interests of a lender. They act not only as your representative but as a knowledgeable consultant and problem solver.

3. Customised Service

Customised service is the differentiating factor when working with a rejected mortgage loan specialist. They should help smooth the way, be available to you, and advise you throughout the closing process.

Hiring a competent rejected mortgage loan specialist can help you find the right mortgage you’re eligible for and best suit your affordability.

If your loan application was rejected, Bluebricks offers professional services, such as improving your credit score and debt service ratio (DSR) and preparing the necessary income documents to help you get your loan approved.

Or, if you are in urgent need of funds, we offer a 30-day fast loan with no hidden costs as well.

The Drawback of Working With A Rejected Mortgage Loan Specialist

When choosing a mortgage professional to work with, it is essential to know that a rejected mortgage loan specialist’s fees are considerably higher in comparison to an outsource banker’s.

However, they have a higher approval rate, with proven strategies that can streamline their clients’ loan application process.

Add your rejected mortgage loan specialist’s fees to your estimated mortgage costs to decide how good a deal you are getting. Moreover, be sure to settle all fee issues upfront before you begin working with a loan specialist or sign anything.

Read More: Bankruptcy Malaysia: How to Remove Bankruptcy Status in Malaysia

How Bluebricks Can Help You

Choosing the right mortgage professional can help you save money, time and frustration. That is why taking the time to choose whom you work with is essential.

Bluebricks is a leading licensed loan agency in Malaysia. With our extensive knowledge and experience in mortgage and business loans, we offer financial consulting services to help our clients find the right solutions for their needs.

Comprehensive Loan Rejected Services

Bluebricks offers comprehensive mortgage loan rejected services to help our clients obtain the loans they desire. We also have connections to licensed money lenders if our clients are not qualified to apply for loans from a bank or are in need of urgent cash.

Mortgage Professionals – FAQs

Buying a home is a significant financial investment. And with so much at stake, it’s important to work with the right mortgage professionals that can offer accurate information and help you make smart decisions.

To make it easier to decide who you should work with, we have compiled 3 popular questions about mortgage professionals in Malaysia.

1. Do I need a mortgage professional?

Consult a mortgage professional if you want access to the entire market or have a complex financial situation, such as bad credit or are in debt. They will make your mortgage application process more manageable.

2. Why should I work with a local mortgage professional?

The main reason to work with a local mortgage professional is their reliability. Local mortgage professionals can provide you with personalised service and have a better reputation for closing loans on a timely basis.

3. Do rejected mortgage loan specialists get better rates?

You have a higher chance of getting better rates with a rejected mortgage loan specialist than without. They have access to many lenders and can find you the best deals.

About Bluebricks

BlueBricks Holding is one of the top ten leading loan agency companies in Malaysia in terms of loan approval rates. As a leading licensed loan agency company, we have extensive knowledge and experience in mortgage and business loans, and this enables us to help our customers to get the deal that is best suitable to them.

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