Finding out or shopping for a mortgage lender can get a bit confusing and a little intimidating as well and this is something that a lot o people would agree to. With a plethora of companies and types of lenders to select, you might suffer from what is known as ‘analysis paralysis.’ Having a proper understanding on the differences between the main lenders types can help you narrow down the search. The type of loan that you are planning to choose is certainly important, and choosing the right lender and mortgage company in Atlanta, GA or any other location for that matter is also important. Making the correct decision can help you save a significant amount of money and time along with reducing the frustration. That is why it is important to take out some quality time to shop around for the lender. You must always remember that it is a highly crowded field and you cannot simply choose anyone or anything just like that. Having said that, let us now learn more about the various types of mortgage lenders present in the market.
Retail Lenders: Retail lenders are the ones who can mortgage directly to consumers, and not the institutions. Banks, credit unions, as well as mortgage bankers are included in the category of retail lenders. Along with mortgages, retail lenders provide other products as well; these are checking/savings accounts, auto loans and personal loans.
Direct Lenders: Direct lenders in Atlanta, GA or any other location start or begin with their own loans. These lenders either make use of their personal funds or borrow them from some other place. The portfolio lenders and mortgage banks are categorized as direct lenders. A direct lender can be differentiated from a retail bank lender in terms of the mortgage specialization.
Portfolio Lenders: A portfolio lender supplies to the loan of the borrowers with his/her own money. That is why this type of lender isn’t obligated to the interests/demands of external investors. Portfolio lenders have the power to set their own set of borrowing terms and conditions. This may appeal to a number of borrowers.
Wholesale Lenders: Wholesale lenders can be various financial institutions or banks that offer loans with the help of third parties (mortgage brokers, banks or credit unions). These particular lenders do not exactly work with the consumers, however they originate, fund and sometimes even service loans.
Correspondent Lenders: Correspondent lenders become an essential part of the equation when a mortgage is issued. They are the first lenders who make the loan and might even do a loan service if required. In most usual scenarios, these lenders sell mortgages to investors (who are also called sponsors), who then sell them again to the investors on a secondary mortgage market platform.
Consider this article and find the best mortgage lenders in Atlanta, GA for your own requirement.