A mortgage who’s who

As you reach out to your lender to explore potential solutions to your mortgage problem, you may hear about some of these real estate professionals. Knowing a little about what each one does may help you understand the process a bit better:

• Mortgage broker. A mortgage broker can be viewed as a middleman, a third party who tries to match those applying for a mortgage loan with lenders offering mortgage loans, unlike a loan officer who usually works directly for a specific bank or other lender.
• Appraiser. An appraiser is the person who conducts an evaluation of the home being purchased, assigning an estimated value to the home and property. Accurate appraisals help lenders set borrowing limits, while also helping homebuyers understand the estimated value of the asset they are interested in purchasing.
• Home inspector. The home inspector conducts a review of the interior and exterior of the home being purchased, noting the condition of the structure, appliances, and other physical features.
• Lender. The lender is the bank, savings and loan company, credit union, mortgage finance company, or investment bank that receives an application from the borrower and makes a lending decision. If it’s approved, the organization lends the money to the borrower to purchase the home.
• Servicer. The servicer, who may not be the lender, is the organization to whom mortgage payments are typically sent and who answers borrowers’ questions. Lenders usually pay servicers to perform these functions on their behalf.
• Investor. Sometimes lenders sell their mortgage loans to investment firms, which package or bundle the loans into securities and sell them to investors. Investors own the rights to the payments borrowers make on their loans. They also take the risk that borrowers may not make their payments or go into foreclosure.
• Trustee. A trustee is typically a neutral third party – neither lender nor borrower – who holds temporary title to the home and property until the lien is paid in full. If your loan becomes delinquent and the lender provides proof of delinquency to the trustee, the trustee has the right to foreclose and sell your home.