Article
Home Loan Lenders
Buying a New York condominium home has currently been made easy through the mortgage process. A mortgage, or deed of trust, is a form of protection that a borrower gives to a lender in exchange for a loan. Who exactly is the lender? Are all lenders the same? The following is a list of the different types of lenders;
1. The Mortgage Banker
Mortgage bankers are lenders big enough to create loans and pools of loans that they sell directly to lending institutions. Any company that assembles and sells loans is a mortgage banker. Mortgage bankers can vary significantly when it comes to size. Some mortgage bankers service the loans they originate, but some do not. Most mortgage bankers have wholesale lending divisions within their companies.
2. The Mortgage Broker
Mortgage brokers are individuals or companies that bring borrowers and lenders together and then facilitate the loan process between these two parties. If this contact results in a loan for your New York condominium, the broker receives a commission, often from both parties. Basically, a mortgage broker is an intermediary. Prospective borrowers for New York condominium homes, who either do not know much about the lending industry or do not have time to shop around for different types of loans, hire mortgage brokers to do this work for them.
In this way, the job of the mortgage broker is analogous to the job of the real estate buyer's agent, who works on behalf of the buyer to shop around for different New York condominium homes. A mortgage broker can evaluate the different types of loans available to you and can give you insight as to which banks or financial institutions offer the most competitive rates and the terms most compatible with your particular situation.
Be sure to get all of this important information in writing so that you can review it before taking out a loan on any New York condominiums. By obtaining a loan through a broker you can get more specialized loans than the standard fifteen or thirty-year loans that you hear about or read about on the Internet. Note that when you enlist the services of a mortgage broker, you often have to pay an initial fee or commission once you obtain your loan, but it is a safe way to proceed in real estate. Mortgage broker companies originate loans in order to broker them to wholesale lending institutions with which they have established relationships.
3. The Direct Lender
Direct lenders fund their own loans. This category can include mortgage bankers, portfolio lenders, or small lending companies. While planning to apply for loans there are many options to choose from, but proceed with care.
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