Buying a home is one of the biggest responsibilities you are bound to encounter in your life. As you embark on this journey, you will probably be looking for a home loan to help finance your mortgage. Therefore, you should be ready to come across three types of financial institutions namely, mortgage bankers, correspondent lender, and mortgage brokers. These financial institutions have minor differences in the way they fund their loans. A mortgage banker is considered a primary lender. The broker, on the other hand, has a close relationship with bankers and seeks to find reasonable rates. Once the broker has pinpointed a bank offering the best rates, they place the loan with the bank. A correspondent lender funds loans in their name but they sell the loan to lenders who are in direct contact with the clients. The loan is supposed to follow the guidelines set by the lender who is servicing it and is underwritten.
Benefits of Using Correspondent Lending
Correspondent lending will offer you a wide variety of mortgage types. Such privilege comes as a result of the relationship between the lender and the wholesale lenders. However, this may not be the case if you are dealing directly with lenders. Therefore, using correspondent lending can help you achieve your homeownership goals.
When it comes to correspondent lending, you do not have to worry about facing the risk of increased interest rates. These lenders sell their loans at a fixed interest. Mortgage banks, on the other hand, pose a threat in the increase in rates which is a result of the bank holding unsold mortgages.
Correspondent lending offers an individual the chance to work directly with experienced professionals who can help you reach your mortgage goal.
In short, when you work with a correspondent lender, you get to work directly with the company who will make the last and final loan decision.
The American dream drives Americans. Part of this vision is owning your own home. However, only a small portion of the population in the country can afford to purchase a house without seeking mortgage solutions. As a result, the larger percentage of the population has to rely on mortgages to buy their residence of choice. Fortunately, there are many financial lending institutes across the country one of which is correspondent lending which can bring you a step closer to your dream, with the Gregg Busch Team being one of the best.