Wholesale Mortgages

Mortgage Brokers and Bankers in Relation to Wholesale Mortgage Lenders

Finding a home to live in is becoming easier with the advent of the internet. By surfing through the net pages, a prospective home buyer could just click through the search engines and find the location of his choice and the available properties on sale. At the convenience of his home and at his own free time, he could look into properties and get pertinent information about the neighborhood. Driving around on weekends on the said neighborhood searching for available houses would be out of his tight schedules.

If he is on a tight financial situation, he could opt to search for mortgage home brokers or mortgage bankers or directly to the wholesale mortgage lenders. As much as possible, borrowers would like to process their mortgage loans directly with the wholesale mortgage lenders because of their lower interest rates. However it is not really possible to do so because they have brokers or bankers who handle these processes for them, which makes it convenient and easy for these companies.

These two entities, bankers and brokers, are connected with wholesale mortgage lending companies who give them a lower rate and in turn they would add up a fee to these predetermined rates as their compensation for getting these customers.

The role of the brokers therefore is to choose which lender to direct his customers to. He could take care of the necessary papers for the customers and send them to the companies for approval. If ever the loan is denied, the mortgage broker could then opt to direct his client to another wholesale lender that would give his client another chance of getting the said mortgage loan.

There are mortgage bankers though who are stand alone institutions in the sense that they don’t refer customers to wholesale mortgage lenders anymore. Instead they are large enough to take these customers for their own and offer them the mortgage loans themselves, giving them payment options on long or short term basis.

The role of mortgage bankers and mortgage brokers, therefore, is to cater to the needs of home buyers and provide wholesale lenders prospective clients who will actually apply for a loan in their institution. These brokers have websites which could easily be found by searching online, and they are also available in the local newspapers. Finding a reliable broker or banker must also be one of the buyer’s homework in his search for one, as he could also be easily talked into a mortgage loan with too high an interest due to the added fee of the broker, and which he could have avoided if he found a more conscientious broker.

Because of the rising competition among mortgage brokers, the buyers are often at an advantage. They could easily find competent brokers with excellent service in many areas. The role of the mortgage lenders in all these is to offer their brokers a fast and speedy processing of loans for their prospective home buyers. And the buyers could soon live in his dream house according to the budget that he could afford.