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Online Mortgage Brokers – What You Might Not Know About Home Loans & The Internet

You may think that applying online for a mortgage is the same as applying with a broker in the ‘real world’, only more convenient.

While applying for a mortgage online is much more convenient, and sure to help you get a lower rate because of the amount of competition online, there is another benefit to using the internet when applying for a loan.

Sometimes when you meet a broker and he/she takes a look at your financial qualifications, they might say, we can get you this rate. And that’s it. That is your loan option with that broker. Most brokers have the mentality of wanting to process as many mortgage loans as quickly as possible, which is understandable. Well, one thing that you might want to know to help yourself out is that there are literally hundreds of different mortgage programs available. Most brokers and lenders will not explain to you the mortgage options you do have. They usually have a few favorite programs and will just use those over and over since they know them.

A great way to help yourself is to research loan programs online. One benefit of the interne is that there are many informative articles and information to help you understand the pro’s and cons of every kind of loan program, FHA loans, balloon mortgages, VA loans, graduated payment mortgages, Fannie Mae and Freddie Mac loans.

Once I started doing my research online and reading through the mortgage company websites online, I was amazed to discover that there are mortgage loans online that I would have liked to had when I first bought my house, but I didn’t even know they existed and they were never offered to me by my broker. I would have saved myself a lot of money had I done my research online first.

To view our list of recommended mortgage lenders online, visit this page: http://www.abcloanguide.com/mortgageloans.shtml.

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

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.

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.

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.

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.