Major Categories Of Primary Mortgage Lenders

A bank or a mortgage company, which offers home loans can be referred to as a ‘mortgage lender’. There are various categories of primary mortgage lenders. Here, three major categories are described in detail.

• Mortgage Banker:

A lending organization or an individual that either services mortgage loans or originate loans can be referred to as a ‘mortgage banker’.

The role of a mortgage banker is to sell mortgages to the second mortgage market soon after funding. The mortgage banker can, however, continue to service the loan. In this case, the mortgage sale would not terminate the relationship between the lender and the borrower.

A mortgage banker helps the borrowers to select the type of mortgage that will suit their financial objective.

• Portfolio Lender:

An organization is called a ‘portfolio lender’ when it uses its own funds to provide loans, and maintains a record of the loan in the organization's books.

It does not sell mortgages to the second mortgage market. Instead, it keeps most of the mortgages for the purpose of an investment portfolio.

Such an organization is not bound by the Freddie Mac or Fannie Mae guidelines.

The portfolio loan can be sold in the second mortgage market only when it is ‘seasoned’. A portfolio loan becomes seasoned when it reaches the one-year mark without any late payments. In such a case, the portfolio lender becomes a mortgage banker who continues to service the loan.

• Direct Lender:

An individual or an organization that gets the funds for the loans from other lending organizations but makes loans in its own name is termed as a ‘direct lender’. He can either be a portfolio lender or a mortgage banker.

Other categories of primary mortgage lenders include a correspondent lender, a mortgage broker, wholesale lender, online mortgage lender, and a sub-prime mortgage lender. These are described in other related articles.

by: Eshwarya patel

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Buy to Let Mortgage Lender Network: An Advantageous Financial Congregation

Buy to let mortgage lender network in the UK is expanding as more and more people are becoming aware of the advantages associated with buy to let mortgage. Buy to let mortgage is a good investment opportunity. You can take mortgage and purchase some property with an aim to earn rental income or capital growth over a period of time. You can also use the rental income in paying off the mortgage.

In UK, there exists a large buy to let mortgage lender network which helps you out in availing buy to let mortgage at competitive rates. You need to put some property as collateral which may be your house, land or any other premises. The documents relating to the title of the property remains with the mortgage lender but the possession of the property always remains with the borrower and he can use it anyway. Once the mortgage is repaid, the borrower gets back the documents.

Since buy to let mortgage is a secured loan, it brings in many advantages for the borrower. You can get extended repayment period, low rate of interest and smaller installments. However, buy to let mortgage involves the risk of repossession in case you fail to repay the installments in time.

A large buy to let mortgage lender network helps you in getting mortgage at cheap rates. You can advantageously utilise the existing buy to let mortgage lender network by requisitioning online quotes. Compare these online quotes from different mortgage lenders and select the best mortgage deal.

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Shakespeare Finance as a finance specialist. For more information visit us http://www.easy-buy-to-let-mortgages.co.uk

By: John Carry

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Mortgage Lending

Mortgage lending has become a thriving business with more and more mortgage borrowers relying on mortgage lending institutions to get loans. The Internet has made comparing and studying different lending institutions easier for the mortgage seekers. Mortgage lending companies can now get in touch with the potential buyers right away. All in all, mortgage lending has become fast-paced. The term ‘mortgage lead’ often appears while discussing mortgage lending. Mortgage lending firms act on the basis of mortgage leads. Mortgage leads are basically mortgaging applications redirected to the mortgage lending companies through mortgage lead generation companies.

If you are a mortgage seeker, all you need to do is check out some leading mortgage lead generation companies on the web and fill out an online application form to let them know the type of mortgage loans you need. After verifying your application, they will send your application to mortgage lending companies. The lending companies will treat your application as a mortgage lead. They will in turn contact you with loan offers. You can then compare all the loan offers to go for the most suitable one. The role of mortgage lending companies assumes greater significance, as they have to come up with customized loan plans to suit the borrowers’ requirements.

Mortgage lending has opened up an opportunity for the loan seekers to go for the best mortgage loan. Builders, real estate professionals and individual homebuyers can utilize the mortgage lending service to realize their dream. As a borrower you can always consult mortgage-lending experts to get better ideas on the recent trend. You should always go for those mortgage-lending institutions that have got the experience and expertise to offer you some fabulous mortgage deals. Mortgage lending requires a focused approach to recognize what borrowers actually want. Mortgage lending companies always look for better lending opportunities.

Mortgage Lending provides detailed information on Mortgage Lending, Commercial Mortgage Lending, Online Mortgage Lending, Mortgage And Lending Companies and more. Mortgage Lending is affiliated with Bi-Weekly Mortgage Payments.

By: Eric Morris

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