These are correspondent lenders, mortgage brokers, wholesale lenders, direct lenders, portfolio lenders, mortgage bankers, online mortgage lenders, and sub-prime mortgage lenders.
Here, the last two categories are described in detail.
• Online Mortgage Lender:
If an individual or a lending organization uses the internet to complete the mortgage process, it is referred to as an ‘online mortgage lender’.
An online mortgage lender has several advantages over other traditional types of mortgage lenders.
The benefits offered to the borrowers are as follows:
• There is no need to do any sort of paperwork.
• One can apply for loans online sitting at home.
• No mortgage brokers or a ‘middleman’ is involved in the entire process.
• It also offers comparisons and real-time quotes.
• Online tools are available to refine search options.
• The application is accelerated through online pre-qualification.
• Option for personal consultation with the mortgage banker is also available.
• The entire process is easier, quicker, and cheaper.
Sub-Prime Mortgage Lender:
Sub-prime mortgage lenders are either independent or affiliated to the mainstream lenders. These lenders offer loans in case a person does not qualify for loans from the other lenders.
These lenders offer loans at higher prices. Therefore, the borrowers should try their best to obtain loans from the mainstream lenders, and steer clear of this category of primary mortgage lenders.
Finding the right mortgage lender is very necessary in order to obtain the right mortgage. Each category of primary mortgage lenders differs in its functions, and in the advantages that it offers. Other categories are described in detail in related articles.
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