It is critical to the success of a loan to be aware of all parties necessarily involved in a loan approval process. Here, we will discuss each party involved in a loan and the role they play.
Borrower
The borrower is responsible to determine what amount he can borrow, and whether he has the necessary financial assets in order to justify the borrowed amount according to common lending criteria.
Broker
The broker serves the process of acquiring a loan by collaborating with multiple loan agencies and identifying a loan product that suits the application and asset portfolio of the borrower.
Lender
The lender is the financial partner of the purchase, who retains lending ownership of the title until the mortgage is paid. In the case of a reverse exchange, the qualified intermediary and lender hold the title of the acquired property until the exchange is funded by the sale of the relinquished property.
Conclusion
With a better understanding of how borrowers, brokers, and lenders relate to one another in the loan process, it will be easier for each party to perform its respective necessary function, and the likelihood increases that all parties mutually benefit from the loan. However, we would advise speaking to a professional regarding a loan. Schedule a meeting with our qualified loan professional today to explore your financing options.
