What Is a Mortgage Lender?
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What Is a Mortgage?
A mortgage is a real estate lien against property. The lien is placed against the property by mortgage lender who uses the property as collateral in exchange for lending the homeowner money to purchase the property.
What Is a Mortgage Lender?A mortgage lender is an individual or company that loans money in exchange for interest in residential or commercial real estate. A lender can provide more than just real estate loans to homeowners. It can also offer other types of products connected to loans.
Mortgage bankers are also commonly referred to as mortgage lenders. They originate their mortgage loans and sell them in bundles to secondary market to public and private investors.
Are There Different Types of Mortgage Lenders?
Yes. Mortgage lenders are also:
- Portfolio mortgage lenders: These lenders also originate their own mortgage loans. They may service, or keep their own loans. After the property owner pays on the loan for about a year, it is considered a “seasoned” loan and can be sold to private or public investors on the secondary market. Unlike traditional mortgage lenders, portfolio lenders offer more loan program options and flexible loan products.
- Correspondent mortgage lenders: This type of lender originates and funds mortgage loans under its own name. Correspondent mortgage lenders also sell the loans to larger lenders, who may sell them to private and public investors. The terms of the agreement are typically based on terms approved by the larger lender.
- Subprime mortgage lenders: These mortgage lenders focus on people with less than perfect credit or inability to purchase a home.
- Alt-A mortgage lenders: This kind of lender offers mortgages to individuals with limited income documentation, credit scores under 720, and little to no down payment.
What Is the Difference between Wholesale and Warehouse Mortgage Lenders?
Wholesale lenders originate and service their loans, then sell them. A warehouse lender provides financing to smaller lenders.
Should I Contact a Lawyer about a Mortgage Lender?
Acquiring a mortgage requires legal assistance to ensure the process goes smoothly. Talk to a real estate lawyer if you have any questions about mortgage lenders and any disputes with lenders.
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Last Modified: 06-29-2015 11:56 AM PDT
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