Colorado Springs Real Estate | Colorado Springs Homes for Sale
  • Home
  • Advanced Search
  • Military Relocation
  • Selling
  • What's My Home Worth?
  • Blog
    Login
    (719) 660-1116

    Sign in to your account

    Need to reset your phone number?

    Don't have an account with us?

    Click here to sign up.

    Types of Mortgage Lenders

    There are a number of types of primary mortgage lenders that you may encounter when shopping for your mortgage loan. To give you a better understanding of these service providers, a brief explanation is provided below.

    Mortgage Bankers

    Mortgage Bankers typically originate loans and then sell these loans to the secondary mortgage market shortly after funding. (The mortgage banker may or may not sell the servicing of the loan.) Often mortgage bankers have attractive loan programs and rates.

    Portfolio Lenders

    Portfolio Lenders make loans with the institution's own funds and keep the loan on the institution's books rather than immediately selling it to the secondary mortgage market. Many institutions engage in mortgage banking as well as portfolio lending.

    Since portfolio lenders fund the loans, they are not confined to Freddie Mac/Fannie Mae guidelines. After a portfolio loan has reached its one year anniversary date without any late payments, it is considered seasoned and may be sold to the secondary mortgage market even if it does not meet Freddie Mac/Fannie Mae guidelines.

    If a portfolio loan is sold to the secondary mortgage market, the portfolio lender may continue to service the loan.

    Direct Lenders

    Direct Lenders fund their own loans. Direct lenders usually fall into the category of a mortgage banker or portfolio lender.

    Correspondents

    Correspondents act on behalf of one or several lenders (sponsors) throughout the origination and closing. The loan is usually underwritten by the sponsor. The correspondent acts as the lender's agent. The correspondent may also service the loan for the lender.

    Mortgage Brokers

    Mortgage Brokers work as intermediaries between lenders and borrowers. Mortgage brokers have access to a number of lenders and often offer the most variety in loan programs. Brokers assist the borrower in filling out the loan application, obtaining the credit report and appraisal, selecting a loan program and finding a lender to fund the loan. In general, brokers do not make the decision to extend the loan and do not fund the loan.

    The mortgage broker may be paid by the borrower or the lender. Payment to the broker is typically included in the closing costs as either fees or points.

    Wholesale Lenders

    Wholesale Lenders underwrite and fund mortgage loans. Wholesale lenders may also service the loan payments and ensure the loan's compliance with underwriting guidelines.

    Banks, Credit Unions and Savings & Loans

    Banks, Credit Unions and Savings & Loans use funds gathered from their customers through checking, savings and certificates of deposit to make mortgage loans. The institution may hold the loan in its portfolio or sell it to a secondary mortgage market.

    Secondary Mortgage Market

    When you apply for a home mortgage, you may be under the impression that the mortgage lender will be servicing the loan until it is paid off. This may not be the case. It is common practice for the mortgage loan to be bought and sold to a secondary mortgage market investor, sometimes more than once in the life of a loan.

    These transactions will not affect your mortgage amount or your mortgage payment. The secondary mortgage market is comprised of investors like Fannie Mae and Freddie Mac. Selling loans to the secondary mortgage market provides primary lenders with funds needed to issue new mortgage loans.

    Like or Share
    Loading likes...

    Address Search

    Colorado Springs Real Estate

    • Black Forest
    • Briargate
    • Cordera
    • Falcon
    • Falcon Estates
    • Flying Horse
    • Gleneagle
    • Kissing Camels
    • Meridian Ranch
    • Mountain Shadows
    • Northgate
    • Norwood
    • Oak Valley Ranch
    • Old Farm
    • Paint Brush Hills
    • Peregrine
    • Peyton
    • Pine Creek
    • Pulpit Rock
    • Ridgeview
    • Rockrimmon
    • Spring Creek
    • Springs Ranch
    • Stetson Hills
    • Villa Loma
    • Village Seven
    • Vista Grande
    • Wagon Trails
    • Wolf Ranch
    • Military Relocation Military Relocation

    Military Bases in Colorado Springs

    • Fort Carson
    • Cheyenne Mountain
    • Peterson AFB
    • Schriever AFB
    • US Air Force Academy

    About Colorado Springs

    • Area Attractions
    • Area Info
    • New Construction Builders

    Real Estate Market Reports

    • Colorado Springs Market Report
    • Fountain Market Report
    • Monument Market Report
    • Peyton Market Report
    • Woodland Park Market Report

    Interactive Map Search

    Buying & Selling Made Easy

     Freshest Data Available
     Active Listings Only
     Customizable Search Options
     New Listing Alerts
     Instant Home Value Assessments

    The Home Buying Process

     

    Mortgage Calculator

    Amount of Loan
    Annual Interest Rate
    %
    Term of Loan
    Years
    Calculate

    Does not include any taxes or fees.
    Please consult a financial professional.

    Buyer Resources

    • Ask Your REALTOR®
    • Applying for a Loan
    • Bi-Weekly Mortgage
    • Buyer’s Agent
    • Buying versus Renting
    • Closing Costs
    • Closing the Deal
    • Contract of Sale
    • Correcting Your Credit
    • Environmental Issues
    • Find the Perfect House
    • First Time Homebuyers
    • Get Pre-Qualified
    • Home Inspections
    • How Much Can I Afford?
    • Make Your Move Easier
    • Making an Offer
    • Market Snapshot
    • Mortgage Savings Tips
    • Real Estate FAQs
    • Short Sale
    • Top 10 Signs to Own
    • Types of Lenders
    • What is Escrow?
    • Who to Work With

    Seller Resources

    • 10 Biggest Selling Myths
    • 10 Signs it’s Time to Sell
    • Black Mold Basics
    • Closing Costs
    • Comparable Sales
    • Contingencies/Negotiations
    • Curb Appeal Checklist
    • Getting the Highest Price
    • Getting Ready to Sell
    • Home Appreciation
    • Home Inspections
    • Is Your Price Too High?
    • Make Your Move Easier
    • Market Snapshot
    • Real Estate FAQs
    • Short Sale
    • Should I Sell By Owner?
    • The Selling Process

    Bob De Young

    About Us

    • Meet the Team
    • Testimonials
    • Featured Properties
    • Recently Sold Listings
    • Blog
    • Ethics in Real Estate
    • MRE – Master of Real Estate
    • Why Use a REALTOR®

    Connect With Us

    Translate Site

  • Home
  • Advanced Search
  • Military Relocation
  • Buying
  • Featured Properties
  • Coming Soon
  • Foreclosures
  • Selling
  • What's My Home Worth?
  • Recently Sold Listings
  • Market Reports
  • Meet the Team
  • Blog
  • Contact Us
  • Bob DeYoung & Associates, Inc

    Harmony Real Estate Group
    3220 North Academy Blvd, Suite 1
    Colorado Springs, CO 80917

    Phone: (719) 660-1116
    Email: bob@thankavet.com



    © 2017 All Rights Reserved | Privacy Policy

    Advanced Searches

  • Condo Search
  • MLS # Search
  • Sold Search
  • Address Search
  • Foreclosure Search
  • IDX Real Estate Websites by
    • Accessibility