How to Find Wholesale Mortgage Lenders

Some mortgage bankers and portfolio lenders are also wholesale lenders that deal with mortgage brokers, sometimes exclusively.

Most mortgage lenders have both wholesale and retail departments. Mortgage brokers prefer to obtain wholesale rates and then mark up these rates by adding points, presenting the borrowers with quotes that are similar to what borrowers could obtain directly from a retail lender. Mortgage brokers are free to set whatever prices they want, and have different methods for marking up wholesale rates.

Wholesale mortgage lenders generate residential mortgages through a network that includes independent brokers and lenders, offering a wide variety of home financing options: conventional, home equity, government, alternative and jumbo loans. All of these may be purchased from the mortgage professionals, including lenders and brokers, who make up a wholesale mortgage lenders network. The goal of the network is to ensure that both borrowers and lenders benefit from the transaction.

Different types of Wholesale Mortgage Lenders

o Wholesale Mortgage Lenders Network

This is a network of professionals working together in order to find the best deals for those involved in the mortgage process, including homeowners, lenders and even independent mortgage brokers. Professional loan consultants work with the homeowner in order to understand their needs and assist them in choosing the best mortgage program. Even people with less than perfect credit may be able to obtain a mortgage that will help them repair their bad credit, reduce their monthly payments or buy a home.

o Second Wholesale Mortgage Lenders

These mortgage lenders offer a range of second mortgage finance programs to help homeowners choose the right option. A second mortgage lender offers competitive rates for different loans. There are different types of second mortgage programs, like a cash-out second mortgage that can be taken out for debt consolidation and home improvement. It can also be used to consolidate high interest credit card debt. It could mean a re-mortgage and be used to purchase another property.

The lending criteria set by second wholesale mortgage lenders are very strict, though the cost is similar to first mortgages. There are also potential tax consequences as the second home or property could be classified as providing the rental income to the owner.

o Online Wholesale Mortgage Lenders

There usually are no upfront costs or obligations when you apply with an online mortgage lender. It offers flexibility both in applying online as well as in obtaining information about various mortgage programs. Quotes are also available for free and the homebuyer is under no obligation to apply with the lender. Rates and costs are easy to compare, since there are many available materials online to help the home-buying process. For advice on which online lender to choose, a professional mortgage advisor may be of help.

o Sub-Prime Wholesale Mortgage Lenders

These are lenders specializing in loan programs for those with less than perfect credit history. Sub-prime mortgages are usually written at a higher interest rates compared to ordinary mortgages. Because of the high cost, it can help in establishing or re-establishing a good credit record. Sub-prime mortgage lenders help credit-impaired borrowers obtain a mortgage. A sub-prime mortgage is for a short period compared to other programs. In order for a borrower to qualify for a sub-prime mortgage, a significant deposit amount towards the home is expected.

Stu Pearson has an interest in Finance & Business and Mortgage Lenders, for more FREE information and articles please visit Mortgage Lenders Resources

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How to Do a Private Mortgage

In private mortgage, the money is not lent by a bank or financial institution. Rather the money is loaned by a private individual or a commercial enterprise. Hence, before opting for private mortgage you must take into consideration the following points.

• A private mortgage should always be documented. Formulate the loan agreement in such a way that it will protect the interests of both the parties, which comprises of the lender and borrower.
• For documentation take the help of a local attorney, your tax preparer or other experienced person who can help you with the process. Some websites also provide information on how to go about making agreements for private mortgages. It is best to refer to these sites and use them as an aid to help you prepare your mortgage agreement.
• Include every detail in the mortgage agreement like when payments are due, What if payments are not received before the specified date, how and where should payments be made, can the borrower repay, will loan be insured and other details pertinent to the loan and the repayment.
• It is always good to secure the loan using an asset worth the loan amount. This should be followed even if you are taking a loan from a family member or a close friend. This way, even if you run into other financial difficulties, the asset or property will have a lien on it and other creditors cannot go after it. Also, by securing the loan, the borrower can sometimes save taxes. Also, you will not be obligated in case you are borrowing money from a friend or family member.
• Try to maintain the property in good condition and if possible, insure the property. If there is any other lien, mortgage or loan on the property, make it clear to the lender before taking loan against that property.

The success of a private mortgage is based on personal relationship and trust between the borrower and the lender. Hence, take care to maintain good relationship with the lender and ensure that the lender will not suffer if the loan is not paid. This will spoil your relationship forever if the lender is a friend or family member.

About Author:
Kum Martin is an online leading expert in real estate industry. He also offers top quality tips like:
Apartment Listing, VA Home Loan

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How Do You Differentiate Between Mortgage Payment Protection and Income Protection?

Mortgage payment protection and income protection are two different concepts which are often confused as one. Policy to safeguard your income will help you cover your salary in case you are out of work due to accident, injury, sickness, disability etc. And you are free to use it any way. It could be for your groceries, kid's school fees, medical fees and also covers your mortgage loan payments. But a mortgage protection is more specifically used to cover your mortgage payments in case you are out of work due to accident, injury, sickness, disability etc.

A mortgage policy will not necessarily cover your salary. But it is to save your collateral from being confiscated due to non payment of loans. This will help you keep up with your payments on time as your insurance will provide you the dues till you get back to work. You may get an additional 25% cover on the same policy which will help you pay other bills such as mobile bills, electricity bills or utility bills. On the whole the insurance premiums will be based on your loan repayments and not on your salary.

It offers one an advantage to recover while enjoying the benefits of the policies. When you have a policy, you can make use of the mortgage benefits or income benefits you get along with getting time to recover. So that, by the time you get back, things have fallen in place. If there is no policy to protect you, your collateral will be confiscated and you will have no money to cover up your other needs. It's likely to feel depressed during this time, with no cash on hand. But a policy will provide you financial succour.

Vijay K Shetty
Get all your free tips related to payment protection from: payment protection. Guide to income protection: income protection.

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