• Types of Mortgage Lenders Mortgage Bankers and Mortgage Brokers

    Second mortgage

    Today’s subject is about the three different types of mortgage lenders that are out there, you have your bank, you got your mortgage lenders and you got your mortgage brokers and so they’re different and they offer different programs and they have different policies and stuff like that. This is important because not all lenders have all the loan programs out there, so you’re going to find that the loan program you’re looking for might not be available at the lender you are looking at all.

    Traditional Banks                                          

    This is where it all started all right. So everybody knows what a bank is: they’re depository institution. They do commercial lending generally. And we’re going to kind of group credit unions in here as well.

    Mortgage Lenders

    You have what’s called a mortgage lender or a correspondent lender, so they actually do the funding of these loans in their own name, there’s a multitude of these out there and you think everything is basically done in-house. They have their own underwriting and funding on everything, but they are not a bank. So you can’t have a checking account or a savings account there because they are not a depository institution. The only thing that they do is mortgages.

    Mortgage Broker

    The third type of outfit is a mortgage broker. So a mortgage broker does not lend their own money. What they do is they deal with different banks or correspondent lenders, and the different banks reach out to them and say: okay, we have this mortgage product, we have this mortgage program, we have these interest rates, we have these fees and the mortgage broker typically will look and see what the best you know: banks are aligned with them and then, when you go into them they will look at the various options and see what kind of place you would be best suited.

    We are not here to say one is better than the other because there are great banks, great mortgage correspondent lenders and there are great mortgage brokers, but there are also pretty bad banks, mortgage correspondent lenders and mortgage brokers. So it’s kind of up to you to figure out what is going to be best for you. I don’t want to say one is better than the other, but if you go to one and they say this is your only option, it may be your only option at that one particular institution, you should make sure you check around to make sure that you’re getting the best.

    What programs are being offered?

    Make sure that you understand what programs are being offered types of there and make sure you look into the mortgage programs that particular institution does not necessarily provide as well to really get the best loan program that’s suited for you. So don’t be afraid to shop around when it comes to mortgages that you want. Also, make sure that you’re dealing with someone who is knowledgeable because really, ultimately it comes down to the loan originator in most cases as to whether or not they’re going to structure along properly and push you to the best mortgage possible.

    I’m just going to throw one thing in here, and this is my personal opinion. Basically, use a local lender no matter which type of institution you go with use a local lender, it’s just easier all around. If there’s someone to even go see not going to have to nail it across country internet type options. I have seen many of those situations just go sour and you can’t get a hold of anybody.

    Read more in this post: https://www.which.co.uk/money/mortgages-and-property/mortgages/types-of-mortgage/mortgage-types-explained-af1319h2cmck

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  • Understanding Mortgages: Working with a Mortgage Broker

    mortgage lender1

    Working with a helpful mortgage broker can create the often confusing process of obtaining a mortgage a bit easier and more convenient. It is significant to work with the mortgage broker and give all the essential information that he may need for the agreement to be completed. Here are just five ways working with a mortgage broker so you can get the most out of his services.

    Provide the Correct Information

    One of the most vital things you can do to make this way work smoothly is to give the correct information about your credit, your income, your expenses and your debt. Once the mortgage broker requests this information, make sure to give it in a timely and respectable manner. Never lie about your circumstances, as this can just hurt you in the long term. A mortgage broker uses this information to obtain an agreement that fits your financial situation. When you lie about your income, you could probably be out of your security zone with a mortgage that is too much for you to handle. The final thing you would like to do is get a mortgage that you cannot afford and risk foreclosure.

    Demand Good Service

    You are the client of the mortgage broker and you must realize that they must provide you with the best possible service to maintain your business. Do not let it rush into the process or let your business run in the background. If this happens, tell them that you want them to treat you well and that they deserve good service. There are lots of mortgage brokers who would love to have their business. You are in control and can always change brokers if needed.

    Investigate the Mortgage Process before Meeting with the Broker

    It is always a great idea to enter this situation with a little experience behind you. You do not need to know everything about mortgages, but understanding the terms of the mortgage rate and the roles behind the people who grant you the mortgage can speed up the process and protect you against illicit activities. If you have any questions about the mortgage, make sure to ask the mortgage broker and get a better understanding. They are there to notify and help you.

    Do Not Do the Paperwork on Your Own

    The documentation for a mortgage can be complicated, and you may feel a bit confused. Allow the mortgage broker to do his work. They know the documentation and what is required to complete it. They are much more likely to get the correct information, so let them do it or help you. However, never let the documentation not be reviewed by you. Be sure all the paperwork is accurate and read each word before signing!

    Follow Up

    Mortgage brokers can be busy and have several people to attend to. You may help by keeping in touch with them and follow up as necessary through each step of the process. A simple phone call, letter or email can keep the mortgage broker on track, and inform you just about the status of your mortgage. You can request to be notified of each step, as it is done or changes.

    Summary

    The mortgage company is always changing, keeping almost impossible for the average person to keep up with interest rates, mortgage programs, terms, and many options for mortgage lenders. Using the services of a broker or mortgage broker can increase your chances of getting the best offer.

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