[ad_1]
MLO stands for mortgage loan originator, which is a person or institution that helps prospective borrowers navigate the mortgage process before purchasing a property. The MLO is the initial lender for the home loan and works with the borrower throughout the entire mortgage process, from application approval to closing. An MLO can be a loan officer, a mortgage broker, or a lending company.
MLO test: What does a loan originator do?
MLOs guide borrowers through the different steps of getting a mortgage. This can include answering questions, collecting documents, and verifying information. If the borrower buys a property, MLOs also give an estimate of the home loan amount and interest rate based on the borrower’s credit report, income, and other assets. The initial approval of the mortgage can help borrowers determine a home-buying budget, as well as show real estate sellers and agents that the buyer is willing and able to purchase the property.
MLOs continue to work with borrowers throughout the mortgage application process into underwriting, helping to ensure the borrower is ready for closing. As mentioned, an MLO can be a person or a lending institution which initially funds the loan. It can be a bank or non-bank organization. A loan officer, meanwhile, is the person who works with the borrower.
MLO test: What is a mortgage loan officer?
A mortgage loan officer is a professional acting as an MLO and might work directly for a lender. A loan officer can also work as a mortgage broker who partners with multiple lenders to find prospective borrowers the loan option that best aligns with their financial situation, goals, and preferred loan terms.
If you’re curious about this career path, read our article on how to be a mortgage loan officer in 10 steps.
[ad_2]
Source link
