Property Manager MA: Types of Mortgages

Property Manager MA

Property Manager MA: Types of Mortgages

Getting a mortgage can always be quite a task. It is a tedious task as you have to get a lot of paperwork sorted out. Some may find it overwhelming because it requires every detail of your personal and financial life. It is important however because they need to know that you are a suitable candidate for a loan. They have different types of loan models which also differ depending on the economic conditions. Each lender has a different model and has its own advantages.  This guide looks at the types of lenders and allows you to decide which one works the best for you.

Retail banks

Retail banks can be anything from the big names to the smaller (more obscure banks and credit unions). They are responsible for underwriting and approving loans to consumers. They can either keep those loans on their balance sheets or sell them off to investment firms.

The thing about banks is that they reserve the right to send you the monthly mortgage statement. Furthermore they ensure that your loan agent is your point of contact for inquiries.

The advantage of a retail bank is that they are quite flexible with their loans. They can afford to keep the loans on their books so they can give good deals. The fact that they also offer lower rates in exchange for an additional service like a checking account helps.

Property Manager MA: Mortgage banks

Mortgage banks are just like retail banks as they underwrite, approve and close loans for consumers.  The way they work is that they sell those loans to banks, investment firms who go on to turn them into bonds.

Large mortgage banks work like retail banks as they also give you a monthly statement and ask you to contact your loan agent as a primary contact for future inquiries.  The smaller mortgage banks sell the servicing rights to other banks so that means you have to contact a new bank for future inquiries.

Since they sell to other investors, you can get a one-stop rate shopping deal. The fact that they have their own underwriters makes the process rather fast. That

Mortgage brokers

Mortgage brokers are more like the middlemen. They help consumers get loans through retail banks or mortgage banks. Basically the loan is funded and serviced by either of the two. It’s just the broker who gets a cut of the business. These days’ mortgage brokers are not so popular because regulation has made this tougher.  The good thing is that they can help you get good rates and advice you because of their vast experience.

We hope you liked our guide “Property Manager MA: Types of Mortgages”.

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