A good home starts with a good mortgage. So if you are considering buying a home, then you need to contact any of the available wholesale mortgage lenders to help you with the financial requirements of the said home. The lenders usually offer several home financing options, including government, home equity, alternative and jumbo loans. The only condition of the mortgage loans usually is that you pledge the property as collateral until full repayment of the given amount. Furthermore, the lenders can even help you choose a favorable home.
Types of wholesale mortgage lenders
Many people are in need of homes, thus the business of mortgage loans has really prospered. Knowing which type of lender is present in the market and where to find them is quite critical. There are several wholesale mortgage lenders today whom you can borrow from. Here are a few options to consider.
Mortgage brokers are amongst the many lenders available. These are individual companies that operate independently between the wholesale mortgage lenders and the borrower. They provide the loans with the intent of brokering the borrowers into the lending institutions. Usually, they keep a good contact between lenders and borrowers. Mortgage bankers fall into the category of companies who usually originate and create adequate pools of loans and then sell to the secondary market. Portfolio lenders, on the other hand, originate and fund their own pool of loans with more flexibility and unique loan programs. They also allow for borrowers to have deposit accounts with them.
Online mortgage lenders are the recent entrants into the business. In their case, you can apply for the loans through their websites with no obligations and no upfront costs. Also, you have the freedom of searching through the quotes available freely, and without any restrictions, until you come up with your best choice.
Sub-prime wholesale mortgage lenders are the saviors to individual borrowers with bad credits. If you have had some discrepancies in your credit history, then these are the companies to seek. The interest rates are definitely high and you must come up with a good down payment. Also, be ready for the shorter term of the loan. Finally, there are the loan officers who work under the mortgage brokers. They do not necessarily fund any loans, but they solicit customers for the brokers for a commission fee.
Types of mortgage loans
Having decided the type of mortgage lender, a borrower is then tasked with deciding the type of mortgage financing to choose. There are different rates and principles as well as repayment schedules for every loan category, and any lender offers a variety of the loans. Understanding the types of mortgage loans available ensures that a borrower makes the right choice.
The first type is the fixed rate loans, which are the traditional and conventional financing category. For these loans, the repayment quantum or installments remain the same all through the loan period. Secondly, there are the adjustable rate mortgage loans, which allow for the continuous change in the repayment amount. For the first few months, or maybe years of the loan, the borrower usually enjoys lower rates before they shoot up afterwards.
Thirdly, balloon payment mortgage loans allow the borrowers to pay only a specific percentage of the loan amount. Thereafter, when the loan term ends, the borrower must complete the remaining amount in what is called a balloon payment.
The other type of mortgage loan is the interest-only mortgage loan. With this category, the borrower only pays the interest generated by the loan amount for a given period of time and not the principal. Afterwards, the installments rise considerably when the borrower starts paying the principal too.