Jeanie Correa is a writer/editor whose work has spanned 30 years to include newspaper, advertising, marketing, and book and online publishing. Jeanie also holds a Florida real estate license.
Jeanie Correa ContributorJeanie Correa is a writer/editor whose work has spanned 30 years to include newspaper, advertising, marketing, and book and online publishing. Jeanie also holds a Florida real estate license.
Written By Jeanie Correa ContributorJeanie Correa is a writer/editor whose work has spanned 30 years to include newspaper, advertising, marketing, and book and online publishing. Jeanie also holds a Florida real estate license.
Jeanie Correa ContributorJeanie Correa is a writer/editor whose work has spanned 30 years to include newspaper, advertising, marketing, and book and online publishing. Jeanie also holds a Florida real estate license.
ContributorKim Porter began her career as a writer and an editor focusing on personal finance in 2010. Since then, her work has been published everywhere from Forbes Advisor to U.S. News & World Report, Fortune, NextAdvisor, Credit Karma, Bankrate, and more.
Kim Porter began her career as a writer and an editor focusing on personal finance in 2010. Since then, her work has been published everywhere from Forbes Advisor to U.S. News & World Report, Fortune, NextAdvisor, Credit Karma, Bankrate, and more.
Kim Porter began her career as a writer and an editor focusing on personal finance in 2010. Since then, her work has been published everywhere from Forbes Advisor to U.S. News & World Report, Fortune, NextAdvisor, Credit Karma, Bankrate, and more.
Kim Porter began her career as a writer and an editor focusing on personal finance in 2010. Since then, her work has been published everywhere from Forbes Advisor to U.S. News & World Report, Fortune, NextAdvisor, Credit Karma, Bankrate, and more.
Published: Jun 27, 2023, 5:00am
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For most home buyers, applying for a loan or refinancing can be daunting and confusing. Fortunately, the real estate industry has professionals and institutions dedicated to easing your mind. Mortgage loan originators are here to walk new and returning buyers through the loan and refinancing process.
When you purchase or refinance a home, you’ll typically start by visiting a mortgage loan originator. A mortgage loan originator, sometimes known as a mortgage loan officer or MLO, can refer to an institution that initiates a home loan or an individual who works with you to get the loan. These loan experts are your main point of contact throughout the home loan or refinance process.
Mortgages involve multiple people and milestones. The mortgage loan originator acts as the point person throughout the process. They’ll help the borrower choose a home loan, start the paperwork, organize the underwriting stage, order the appraisal and verify the borrower’s application.
The MLO has extensive industry knowledge and is responsible for staying up to date with the latest financial trends, products and rates. They also work with the homebuyer’s real estate agent to ensure all contract deadlines are met.
The person who originates a home loan holds a different title depending on who they work for:
A loan originator is a financial institution or individual who works for a specific institution and helps you throughout the loan process—from choosing a mortgage program to closing the loan. They may be able to offer discounts on interest rates and closing costs. But your options are limited to what’s offered at that specific institution.
A mortgage broker is an independent agent who acts as a middleman between you and the lender. When you approach a broker, they’ll review your finances and choose the best loan. Then they’ll submit your loan application to several lenders and facilitate the loan process.
Mortgage brokers are employed by a brokerage and not a financial institution. As such they don’t get involved in approving or denying home loans.
A mortgage origination fee is a loan processing fee some lenders charge. These fees typically cost 0.5% of the total loan amount. So, if you’re borrowing $200,000, for example, you may pay a mortgage origination fee of $1,000. But some lenders waive the payment in exchange for a higher interest rate.
When choosing between these options, consider how long you plan to have the mortgage. Paying a higher interest rate usually costs much more over time while the fee adds to your upfront expenses. If you aren’t planning to stay in the home for long, then it may be more cost-effective to take the higher mortgage rate instead of paying the fee.
All lenders that issue home loans—such as banks, bank subsidiaries and credit unions—must register with the Nationwide Mortgage Licensing System (NMLS). The NMLS is an agency that oversees mortgage licensing.
If an individual mortgage loan originator is employed by a lender that’s registered with the NMLS, the individual doesn’t have to be licensed. But if they aren’t working for one of these registered institutions, they’ll need to be licensed in the state where they originate loans.
A good mortgage loan originator will help you navigate the mortgage process and protect your interests.
The best way to ensure you’re working with a good MLO is to research them and the company they work for. A great place to start is your real estate agent. They’ll likely have an established working relationship with several reputable, preferred originators who you can trust.
Once you have a list of originators, check out their websites and social media profiles. Read any reviews left by their clients, and use the NMLS to verify their license is up to date. We recommend shopping around until you find the right MLO for you.
Check your rates today with Better Mortgage.
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ContributorJeanie Correa is a writer/editor whose work has spanned 30 years to include newspaper, advertising, marketing, and book and online publishing. Jeanie also holds a Florida real estate license.
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