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Types Of Mortgage Lenders
Mortgage lenders are banks or companies that offer home loans. There are eight different categories of such mortgage lenders among which three are the most important.
The first category gathers the correspondent mortgage lenders which are institutions or organizations that can authorize loans on behalf of another lender. In other words, they act like agents or sponsors of several mortgage lenders, being the ones who underwrite the loan. Unlike the others, they do not group the mortgages for resale, but sell them individually.
Another category of mortgage lenders are the mortgage brokers. They are the ones arranging the finances for the borrowers, thus acting like intermediaries between the former and the lenders. Mortgage brokers can be authorized individuals, working on their own, or companies which employees gather information and techniques as to form a specific way of dealing with the customers. Most of their job is advising the borrowers upon the most suitable choices for a loan, upon the application process as well as upon the location of the lenders. They can also help the borrowers with the credit reports, appraisals and other documentation might be needed for the completion of the contract.
The third category of mortgage lenders gathers the wholesale lenders. These are institutions that fund and underwrite mortgage loans. They do not deal with the borrowers directly, but they work with the brokers. Wholesale lenders who keep all or some of their mortgages are normally called "portfolio lenders" whereas those who sell them are called "mortgage bankers".
In order to get best of the mortgage you might be contracting, you have to be aware of these types of mortgage lenders, see which one can help you better and benefit from their services.