| While moving around the mortgage market circles you | | | | basic information about mortgages. You would say |
| may come across many terms that you have heard | | | | something along the lines of "I am interested in locking |
| before. One term you may not have heard is that of | | | | in a price on a 20 year fixed rate mortgage, what is |
| the wholesale mortgage lender. We all know that | | | | the best you can offer me?" |
| wholesale is usually synonymous with a good deal, so | | | | When you consider the wholesale mark up for the |
| is this an option you should explore? | | | | buyer, think of all the work that the mortgage lender |
| | | | | must do to secure your loan. They need to: run credit |
| A wholesale lender provides loans through a mortgage | | | | checks, pay for advertising to attract customers, |
| broker. The general public does not work directly with | | | | counsel and advise the borrower, verify employment, |
| a wholesale lender. The wholesaler sets the daily | | | | work with the stacks of paper to process the loan |
| market rate available, and the retail lender marks up | | | | and make sure the borrower is aware of insurances |
| the price, so they can stay in business by making a | | | | needed. This is a large amount of work and it is only |
| profit. | | | | fair to pay for it. |
| The wholesale price set by the lender is based on the | | | | You may actually be dealing with a company that is |
| market. While the wholesale lenders prices are | | | | considered a wholesale lender. This could be |
| available, most sites are password protected to be | | | | misleading as you won't actually be receiving the true |
| accessed by the retail clients that actually "sell" the | | | | wholesale cost of the loan. You will actually deal with |
| mortgages. You may come upon a site that is not | | | | representatives of the wholesale lending network that |
| password protected, but the information would best | | | | have the same name as the wholesale lender. |
| serve you as a bargaining chip with a retail broker. | | | | When thinking about wholesale mortgage lenders think |
| The information given by wholesale lenders is | | | | of it as a distribution center. You may be able to go to |
| extremely detailed and cumbersome. If you did happen | | | | a local store to pick up a pack of product that you |
| upon the information and wanted to use it to your | | | | would like. If you wanted to go to their wholesaler you |
| benefit you would have to understand it. Understanding | | | | may have to go to a 100,000 square foot building and |
| it takes quite a bit of research, so finding a broker that | | | | face many dangers to find what you would like. Then |
| you can trust is a better options. | | | | the company would have to figure out how to sell it to |
| Once you approach a broker that you would like to | | | | you. Just knowing the terminology is enough to get you |
| work with you can work out a plan to bring up the | | | | the best deal. |
| wholesale market. You would want to know all of the | | | | |