Common Mortgage Errors Brokers Make During the Home Buying Process
Most potential homebuyers require a mortgage to purchase a property. Many of them look to a mortgage broker to handle the paperwork, find the best deal and approve them for funds. Mortgage errors and omissions insurance steps in when the broker makes a mistake such as one of these.
A broker is responsible for collecting information from borrowers during the application process. The broker then reviews that information prior to closing to ensure it is accurate and complete. Inaccurate information can cause problems with loan funding and even lead to a loan approval the buyer cannot afford.
Mortgage brokers help set up the escrow account that pays for taxes and homeowners insurance. The broker must ensure the account is properly set up and discusses the account and what it is for the borrower. Without an escrow account, the borrower must remember to pay their insurance and taxes. Failure to pay these could cause them to lose the home or have a lien placed on the property.
As referenced on www.axisins.com, a dissatisfied customer can bring litigation against you or your business claiming negligence during the mortgage acquisition process. Insurance steps in to cover those legal fees necessary for resolving claim disputes.
Even a thorough review of the mortgage application can miss errors. Protect your brokerage with mortgage errors and omissions insurance.