One from a mortgage lender that is a mortgage lender. Also, the differentiators between conforming and portfolio loans.
Conforming mortgages, and of these there are three types are required to be conforming to certain guidelines. In the case of example that all VA loans have to be adapted to a specific lending procedure. This permits them to be sold in blocks and referred to as securitizing.
If the loan conforms to guidelines that banks and credit unions can make conforming loans for all kinds and also offer them for sale. It ensures that the loan is predetermined. If they just offer you money, it is an investment loan. You can’t sell it as it isn’t in compliance with their requirements.
It allows them to make any rules they wish to follow. Loans for home equity are the perfect example. They keep the loans under their own rules and maintain it within their own premises, meaning you’re only paying back to the bank.
Brokers or mortgage companies almost never keep a loan. Most of loan proceeds are sold. You will be given a conforming loan, and they’ll be able to find a buyer you. Be prepared if your broker is able to collect each month’s payments.
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