Finding a Wholesale Mortgage Lender
Finding the right wholesale mortgage lender for you or a friend can seem like a daunting task. If you are not affiliated with a bank you can't get access to lists of potential wholesale mortgage lenders. Likewise, you can't look at a phone book and find dozens of lenders. However, there are some easy ways to find the right lender that will be just right for you.
One way to go is by word of mouth. Ask friends, family, co-workers, neighbors and others who know of any wholesale mortgage lenders. This is the best source but it's also the most random. That said, the results should give you some ideas of which lenders may be suitable. You may also receive recommendations from them.
Another way is to visit websites that compare different wholesale mortgage lenders. The website will give you quotes based on your information. Make sure you provide accurate information when filling out the forms. Otherwise, the quote you've gotten may not be the lowest rate available. However, this method is usually free and can give you a good idea of what you could expect.
Forums are another great place to get wholesale mortgage lender quotes. There are thousands of forum threads dedicated to homeowners looking for the right lender. Be sure to check them out. You could come across a great deal. However, you must take special care not to go with the first recommendation.
Check with the Better Business Bureau and other watchdog groups. You can learn about loan scams from there. Also, ask your friends, family and co-workers if they have used any wholesale lenders. They may be able to give you some reliable feedback about wholesale mortgage lenders.
Talk to friends, family and neighbors who have recently bought a house. Find out what their experience was with the lender they choose. You can also learn about bad business practices from these people.
If you're not sure where to start when looking for a wholesale mortgage lender, try asking your real estate agent. They usually know about a few. Asking around can lead you in the right direction. Be aware that some agents have an overall negative reputation, so be wary of them.
When you need to find the best wholesale mortgage lender, you need a combination of all of these strategies. Do your homework. Explore the internet. Talk to people you know. Consider using a wholesale broker that can help you find the best deal.
Wholesale lenders are classified by the Department of Home Finance. Most wholesale mortgage companies fall into one of three categories: banks, brokers or direct lenders. Banks are the most well-known of this group. The most well-known bank is probably Wells Fargo, but there are others.
Banks will often cater to high-end individuals or those who own big homes. These individuals typically own several mortgages. They often own home equity loans, second mortgages and home equity lines of credit as well. These loans are all unsecured loans. A wholesale mortgage lender would be able to give you a great rate on a secured loan. However, there are many banks that are looking for business and are willing to cut corners in order to do business with you.
Brokers are a different breed of wholesale mortgage lenders. They tend to be smaller and specialize in one type of lending. For example, many brokers will work with borrowers who want to refinance but do not want to go through the paperwork required by a conventional lender. A broker can match them up with a wholesale mortgage lender that will approve their loan application without ever submitting it to a bank. Many brokers work just with one specific wholesale lender; however, they may also work with other lenders as well.
Direct wholesale mortgage lenders are the last category of wholesale lenders. This wholesale mortgage lender does not do business with individual borrowers. They tend to work with large groups of people who are looking for a house to invest in. The group may include people who have retirement accounts, or people who own a piece of property that they are interested in turning into rental property.
Whichever type of wholesale mortgage lender you choose, you will want to work with someone who you can easily communicate with. You will also want to work with someone who you are comfortable working with. A good wholesale mortgage lender should be willing to work with you to ensure that you make the best decision possible for your investment. There are many options for getting a home loan for people on lower incomes. However, you need to make sure that you do not get any shady financing options or predatory lending.