How to Find Mortgage Lenders in Houston

All loan officers will tell you that theire company's theact as correspondents, which is how they can be
best and provide you with a list of reasons to back upmortgage bankers as well as mortgage brokers.
their claim. But if you run into the same loan officerMortgage brokers also deal with lending institutions that
years later, chances are good that he not only buthave wholesale loan departments.o Wholesale
works for a different kind of lender, he'll tell you theLenders
new lender he works for is much better - and offerPortfolio lenders and mortgage bankers act as
another list of reasons why.wholesale lenders, serving mortgage brokers for loan
In the past, most people went to portfolio lendersorigination. In fact, some wholesale lenders don't even
because they excelled at closing deals. Over time,have their own retail branches, relying mainly on
however, mortgage bankers and brokers havemortgage brokers for their loans.o Portfolio Lenders
become more important, and agents have gone alongA portfolio lender is an institution that lends its own
with the changing trend. Usually a realtor will direct youmoney and originates loans for itself. They're lending
to a loan officer who has a demonstrated trackfor their own portfolio of loans and aren't concerned
record of service and reliability, but sometimes aabout re-selling them right away. Portfolio lenders are
Realtor will recommend a loan officer who works forusually large banks or savings and loans.o Direct
a lender with whom the realtor is affiliated.Lenders
Sometimes it's more important to choose a good loanDirect lenders fund their own loans and can be small or
officer than a loan company. A loan officer has twolarge lenders. Large banks and savings and loans, as
very important functions - they serves as yourwell as smaller institutions, have "warehouse" lines of
advocate in getting the loan approved, handling all thecredit from which to draw money for funding the loans
negotiations for you. Their second function is to deliverthey give. Direct lenders are generally (but not always)
quality loans, so you need an agent who's dependableportfolio lenders or mortgage bankers.
and ethical.Banks and savings and loan have deposits with which
As for lending institutions, each type of lender has itsto fund loans, but usually use warehouse lines of credit
own strengths and weaknesses. Quality varies withininstead. Smaller institutions also have warehouse lines
each branch office depending on the loan officer, theof credit for the purpose of funding loans. Direct
support staff and other factors.lenders are usually, but not always, mortgage bankers
Different types of Mortgage Lenderso Mortgageor portfolio lenders.o Correspondents
Bankers"Correspondent" refers to a company that handles
A mortgage banker is a lender with enough assets tohome loans in its own name; then they sell those loans
originate individual loans, as well as to create pools ofindividually to a larger lender, or "sponsor." The sponsor
loans that they sell to loan investors. Any companyserves as the mortgage banker, reselling the loan.o
that does this, no matter how small or large theBank and Savings & Loans
company, is considered a mortgage banker. SomeBoth savings and loans and banks usually operate as
service the loans they provide, but not all of them do.omortgage bankers and/or portfolio lenders.o Credit
Mortgage BrokersUnions
Mortgage brokers are companies that originate loansCredit unions are generally correspondents, although if
for the purpose of re-selling them to other lendinga credit union were large enough, it could be a portfolio
institutions. The broker establishes relationships withlender and/or mortgage banker, too.
various companies. Many mortgage brokers that also