If you are on this page then you are looking for mortgage lenders to cater to your requirements. Philadelphia mortgage lenders are available in all configurations and one thing that you have to remember is that they are not made equal. There are several advantages that accrue to finding a reliable mortgage lender for your property acquisition. In this article, we are going to look at some of the elements that you must take into consideration when making a choice of service provider.
What Is A Mortgage Lender?
A mortgage lender is an individual or company that is involved in loaning money and also taking an interest in real property. Lenders avail real estate loans and are a vital ally for those seeking to acquire real estate property. The loan is extended in exchange for the borrower’s signature on a contract stating the debt amount, promise to repay and the applicable terms. The lender will also assume a lien on the said property. They are different from mortgage brokers in that brokers do not extend liquidity to property buyers but rather act as middlemen in availing different loan products from various lenders to consumers seeking to buy real estate. They also extend counseling services to the clients pertaining to the various options.
If a lender performs all the functions unaided by another entity they are referred to as retail lenders. Those that rope in mortgage brokers are known as wholesale lenders. A retail lender performs functions such as finding and counseling customers, taking the applications from clients, locking the loan terms, processing the loan, underwriting the loan, and closing and funding the loan. Wholesale lenders, on the other hand, perform limited functions such as locking loan terms, underwriting loans, as well as closing and funding the loan.
How to Choose
When you go hunting for the best lender for your mortgage requirements, find a number of options online and also ask around from family and friends. You need to make a list of what you would expect from the right product and also compile some questions to ask. Research on the reputations of the options and after that arrange to meet with those who make it to the shortlist. Make sure that there are no hidden charges and/or costs before signing n he dotted line.
Mortgage lenders are very valuable in the way they assist individuals secure real estate property. They provide the much needed liquidity and exist in a number of configurations. Make sure you understand the differences and choose the one that caters to your needs best.