How To Find Mortgage Lenders In Houston

How To Find Mortgage Lenders In Houston



How to​ Find Mortgage Lenders in​ Houston
How to​ find the​ best lenders
All loan officers will tell you​ that theire company's the​ best and provide you​ with a​ list of​ reasons to​ back up their claim .​
But if​ you​ run into the​ same loan officer years later,​ chances are good that he not only but works for a​ different kind of​ lender,​ he'll tell you​ the​ new lender he works for is​ much better – and offer another list of​ reasons why.
In the​ past,​ most people went to​ portfolio lenders because they excelled at​ closing deals .​
Over time,​ however,​ mortgage bankers and brokers have become more important,​ and agents have gone along with the​ changing trend .​
Usually a​ realtor will direct you​ to​ a​ loan officer who has a​ demonstrated track record of​ service and reliability,​ but sometimes a​ realtor will recommend a​ loan officer who works for a​ lender with whom the​ realtor is​ affiliated.
Sometimes it's more important to​ choose a​ good loan officer than a​ loan company .​
a​ loan officer has two very important functions – they serves as​ your advocate in​ getting the​ loan approved,​ handling all the​ negotiations for you​ .​
Their second function is​ to​ deliver quality loans,​ so you​ need an​ agent who's dependable and ethical.
As for lending institutions,​ each type of​ lender has its own strengths and weaknesses .​
Quality varies within each branch office depending on​ the​ loan officer,​ the​ support staff and other factors.
Different types of​ Mortgage Lenders
•Mortgage Bankers
A mortgage banker is​ a​ lender with enough assets to​ originate individual loans,​ as​ well as​ to​ create pools of​ loans that they sell to​ loan investors .​
Any company that does this,​ no matter how small or​ large the​ company,​ is​ considered a​ mortgage banker .​
Some service the​ loans they provide,​ but not all of​ them do.
•Mortgage Brokers
Mortgage brokers are companies that originate loans for the​ purpose of​ re-selling them to​ other lending institutions .​
The broker establishes relationships with various companies .​
Many mortgage brokers that also act as​ correspondents,​ which is​ how they can be mortgage bankers as​ well as​ mortgage brokers .​
Mortgage brokers also deal with lending institutions that have wholesale loan departments.
•Wholesale Lenders
Portfolio lenders and mortgage bankers act as​ wholesale lenders,​ serving mortgage brokers for loan origination .​
In fact,​ some wholesale lenders don't even have their own retail branches,​ relying mainly on​ mortgage brokers for their loans.
•Portfolio Lenders
A portfolio lender is​ an​ institution that lends its own money and originates loans for itself .​
They're lending for their own portfolio of​ loans and aren't concerned about re-selling them right away .​
Portfolio lenders are usually large banks or​ savings and loans.
•Direct Lenders
Direct lenders fund their own loans and can be small or​ large lenders .​
Large banks and savings and loans,​ as​ well as​ smaller institutions,​ have warehouse lines of​ credit from which to​ draw money for funding the​ loans they give .​
Direct lenders are generally (but not always) portfolio lenders or​ mortgage bankers.
Banks and savings and loan have deposits with which to​ fund loans,​ but usually use warehouse lines of​ credit instead .​
Smaller institutions also have warehouse lines of​ credit for the​ purpose of​ funding loans .​
Direct lenders are usually,​ but not always,​ mortgage bankers or​ portfolio lenders.
•Correspondents
Correspondent refers to​ a​ company that handles home loans in​ its own name; then they sell those loans individually to​ a​ larger lender,​ or​ sponsor .​
The sponsor serves as​ the​ mortgage banker,​ reselling the​ loan.
•Bank and Savings & Loans
Both savings and loans and banks usually operate as​ mortgage bankers and/or portfolio lenders.
•Credit Unions
Credit unions are generally correspondents,​ although if​ a​ credit union were large enough,​ it​ could be a​ portfolio lender and/or mortgage banker,​ too.




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