Mortgage Reports

Wholesale mortgage lenders often offer significantly better products than the well-known sellers, but are somewhat more difficult to find. In recent times they have been among the most profitable of mortgage sectors. Although they might not be as well-known or easy to find as the most advertised companies they are not too difficult to search for on the internet currently, for free. They might offer deals direct to individuals, as well as to brokers who act as middle-men between them and the customers.

There are a variety of different types of wholesale home loan lenders. Prime lenders offer wholesale mortgages to those that fit within the standard limits and credit scores etc. These allow usually only one late payment per year or none at all. FHA/VA/Government lenders are backed or sponsored in some way be a government agency, and these sometimes fall within specific categories of property or borrower.

Another type of wholesale lenders are the “hard money” lenders also known as “private”, “Equity”, or “portfolio” lenders. These tend to specialize in unusual area of mortgaging and generally consider the value of the real estate more than the credit history of the borrower. There are also some wholesalers who specialize in lending for new construction of renovation type loans. Some lend to those who have non-standard earning histories, or to those wanting more loans of more than 100%, or for commercial property.

As well as the internet, real estate professionals are good sources of contacts to find wholesale lenders as well as other less typical types of lenders such as sub-prime which are much less common after recent economic problems yet still exist to some extent.

When working with them, it is important to be clear about what fees are due, so that there are no surprises all the way through to closing. There is generally a balance between the interest rate you get and the closing fees you pay, so don’t expect the best of both worlds. Although it might seem far in the future, it is also good to check to see what the fees would be if the loan gets paid off early, which affect how realistic it would be for you to refinance at a later date.

Wholesale mortgage lenders can be a good choice for many home loans, as long as research is done carefully enough.