Understand the Lending Industry

LLenders are the companies that give you the money to purchase a property; they actually fund the mortgage for you at closing. In reality, they will ‘own’ (hold legal interest in) more of the property than you do. Whether the lender is a bank, financial investment brokerage or institution, or a small local company, they all represent groups of investors who pool their money to make a return from the interest you pay on the loan. Some of them could even help with debt consolidation further down the line if this is something that needed to be done after borrowing a loan. Often once your mortgage is closed, it is sold on the secondary market and may become part of investment funds sold on Wall Street. Most people’s retirement funds are invested, to one degree or another, in mortgage vehicles, or mortgage-backed securities (MBS). Traditionally, mortgages represent a safe, reliable, and lucrative investment for investors.

Banks historically have been the most common source for loans. There are local and national banks, each with their own advantages and challenges. However, the lending industry has changed dramatically in the past couple of decades. Thanks to the development of revolutionary financial industry software such as appointment setter services and other marketing tools, financial experts have been able to reap the rewards of new and exciting ways of managing clients, dealing with money related matters and, most importantly, getting down to business. Now even credit unions offer mortgages. Most commonly, there are many mortgage brokerages, and the Internet has become a prominent source to find these companies and for virtual mortgage brokers to work through.

A mortgages broker can broker loan products from a wide array of sources. In fact they usually have access to anything on the market. Often the number of loan products is in the hundreds. Banks and credit unions have Loan Officers to work with you, and they often have their own portfolio of products available for numerous applications. Sometimes loan officers can broker market products just like mortgage brokers. You could even look towards the value that you already have tied up in your car using a title loan (https://titleloansexpress.com), if you’re looking to get a loan even without the best credit.

You will work with a loan originator of some kind who will choose the best applicable product for your specific need. The loan originator is more than a salesperson. They are the face of the lender, the only face you will see, voice you will hear, or phone number, address, and email address you will have. They are your guide and advocate through the whole process. You will never know the underwriter and the many other people involved in your loan acquisition. The loan originator must get to know you, your situation, your goals, and all the challenges that apply to getting you the desired effect. They must also be expert in the paperwork, managing the process, and they must be competent problem-solvers.

Find a great mortgage lender.

Published on: Dec 2, 2012