Residential mortgage loan

Residential mortgage loans are those loans that make use of a residential property as collateral in case of loan default. These loans are specifically meant for home buying activities. Discussed below are some residential loan mortgage sources.

Residential mortgage loan lenders

There are many different types of residential mortgage loan lenders. Some of them are given as follows.

Mortgage Bankers

A Mortgage Banker is a big mortgage lender who has the capacity to generate and originate mortgage loans and loan pools on their own. Loosely speaking any individual or organization that lends is termed as a mortgage banker.

Mortgage Brokers

A mortgage broker is the middle man who brings the loan buyer and seller together for loan initiation. A broker has prior relationships with mortgage lending companies.

Wholesale Lenders and direct lenders

Wholesale lenders are the ones who sell loan pools to mortgage brokers and other loan initiators. Many wholesale lenders depend directly on mortgage brokers for loan initiation and do not have their own outlets. Direct lenders are those mortgage loan lenders who have the ability to fund their own loans.

Banks

Banks are financial institutions that generally provide mortgage loans. Bank mortgage rates are generally different and have different mortgage loan terms.

Credit Unions

Even credit unions provide loans but the only catch here is that one has to be a member of the union to be liable to get mortgage loans.

There are the various sources from where a home buyer can get residential mortgage loans.



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