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Kelly Smith
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Aug 4 · 3 min read
What are mortgage companies?
A mortgage lender is a financial institution, similar to a bank, that originates and funds loans in their own name. Unlike banks and credit unions, mortgage lenders exist for the sole purpose of making loans against real estate. Most mortgage lenders do not service, or “keep”, their loans. Instead, lenders sell their loans to banks or servicing companies. These servicers then take on the job of collecting payments on a monthly basis. Mortgage lenders get their money from banks, also known as investors. Unlike banks and credit unions, most lenders do all their own loan processing, underwriting and closing functions “in-house.” They can take care of the entire process with internal staff. In-house operations shorten the time frame involved with obtaining a mortgage loan. How Do I Get A Mortgage? The process of getting a mortgage is fairly straightforward if you have a regular job, adequate income and a good credit score. W ho Are The Parties Involved In A Mortgage? There are up to three parties involved in every mortgage transaction — a lender, a borrower and possibly a co-signer. Lender A lender is a financial institution that loans you money to buy a home. Your lender might be a bank or credit union, or it might be an online mortgage company like Rocket Mortgage®.
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When you apply for a mortgage, your lender will review your information to make sure you meet their standards. Every lender has their own standards for who they’ll loan money to. Lenders must be careful to only choose qualified clients who are likely to repay their loans. To do this, lenders look at your full financial profile — including your credit score, income, assets and debt — to determine whether you’ll be able to make your loan payments. Borrower The borrower is the individual seeking the loan to buy a home. You may be able to apply as the only borrower on a loan, or you may apply with a co-borrower. Adding more borrowers with income to your loan may allow you to qualify for a more expensive home. Co-Signer Sometimes, because of a negative credit history or no credit history, a lender may ask a prospective borrower to find a co-signer for the mortgage. This is also synonymous with a co-borrower. A co-signer isn’t merely vouching for your character. They are entering into a legally binding contract that will hold them responsible for paying for the mortgage with or without any rights of ownership, should the borrower default on the loan. Lenders Compliance Group Lenders Compliance Group is the first and only full-service, mortgage risk management firm in the United States, specializing exclusively in residential mortgage compliance. We offer the largest suite of compliance solutions for banks, non-banks, credit unions, and finance companies. Through Lenders Compliance Group and its affiliates, they offer Compliance Solutions™ for all aspects of residential mortgage compliance. COMPLIANCE SOLUTIONS GROUP Lenders Compliance Group Servicers Compliance Group Vendors Compliance Group Brokers Compliance Group LCG Quality Control To know more visit : https://lenderscompliancegroup.com/ --
More from Kelly Smith Kelly has done masters in Business Administration. She has strong analytical skills and interpersonal skills.
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