Applications & Processing
Mortgage Brokers and Lenders – Who Does What?
In New York City, knowing the difference between a mortgage broker and a lender can help streamline your home-buying process.
- Mortgage Broker: Your main point of contact throughout the loan process. Brokers work with multiple lenders to find the best loan programs, rates, and terms for your situation. They handle paperwork, communicate with lenders on your behalf, and provide guidance at every step. Brokers are typically compensated by the lender for their services.
- Lender: The institution that provides the funds for your mortgage. In NYC, lenders often have specialized committees especially for co-op and condo financing that review both your financial profile and the property before approving a loan.
Filling Out the Application
Loan applications involve standard forms, many of which brokers now make available online. Accuracy is crucial; all information will be verified and used to determine your eligibility and loan amount. Taking the time to complete forms carefully helps prevent delays.
Documentation
Your broker will request documentation you began gathering in your Green File, which may include:
- Two years of W-2s, or two years of tax returns if self-employed
- Recent pay stubs
- Three months of bank and money market statements
- Brokerage, retirement, and investment account statements
- Proof of additional income (alimony, trusts, rental income, etc.)
- Credit card statements and other debts (auto, student, personal loans)
- Driver’s license or government-issued ID
- Non-U.S. citizens: green card or visa
- Copies of existing mortgages if applying for a home equity loan or refinancing
Stay in Communication
Once your application is submitted, an underwriter will review your financials to confirm your ability to repay the loan. In NYC, particularly for co-ops and condos, a loan approval committee may also review your financial profile and the property before final approval.
Questions will arise during this process. Promptly returning your broker’s calls and checking in periodically helps keep the approval process moving smoothly, ensuring you stay competitive in New York’s fast-paced real estate market.