Mortgage brokers are mediators of loan between the lender or lending agency and the recipient. A mortgage broker negotiates the loan on your behalf and he is the link between the borrower and lender. Mortgage bankers on the other hand are lenders. Most home buyers avail the services of leading mortgage brokers as they work in the best interests of the customers. Mortgage bankers act as lenders that sell their loans in pools to the secondary market ensuring that new loans can be generated.
There are several reasons why one should invest in the services of mortgage brokers. First and foremost, mortgage brokers have regular contact with lenders therefore they can get you the best average rates depending on the type of mortgage you are applying for.
The different types of Mortgage Bankers:
Mortgage companies are often referred to as Mortgage Bankers. They differ from Banks in the way that they operate. Mortgage Companies have lines of credit from other lending institutions. Based on the lending guidelines, the Mortgage Company closes the loan in the correspondent`s name.
There are different types of Mortgage Brokers:
Portfolio Mortgage Lenders
Portfolio mortgage lenders create and fund their own loans. They typically offer deposit accounts to consumers and they are able to hold on to the loans they fund. On receiving the loans they may be sold to the secondary market easily.
Correspondent Mortgage Lenders
Correspondent mortgage lenders work in a distinct fashion as they first originate and fund loans in their own name. Eventually they sell them off to larger mortgage lenders which may then be transferred to the secondary market.
Direct Mortgage Lenders
A direct mortgage lender is essentially a bank that works with a homeowner without the need for a middleman or broker. Mortgage bankers often fall in this category.
Wholesale Mortgage Lenders
Wholesale mortgage lenders have wholesale and retail divisions and they are quite similar to mortgage bankers. They originate loans and then sell them to secondary market. They may work on the retail end with borrowers and once they secure the deal they forward that deal to a wholesale mortgage lender for underwriting and processing.
Warehouse lenders offer financing to mortgage lenders to ensure that they are able to originate their own mortgages. This short-term funding ensures that smaller lenders get liquidity to help them focus on making cost effective mortgages while selling existing ones to the secondary market.
The role of the mortgage broker is gaining prominence like never before. Since mortgage brokers are professionals with the expertise and knowledge to cater to every borrower`s financing needs, mortgage brokers have become an integral part of the real estate sector and other industries. If you or your business is looking for services from Mortgage lenders we promise to give you nothing but the best and most authentic list of Mortgage lenders. Avail the best features in home loans and give your purchases and investments an edge with Mortgage bankers’ expert guidance.