A New Choice for Home Financing: Correspondent Lenders

When you begin your search for a new home loan, one of the first things to consider is where you'll get the money. Your basic choices will be mortgage brokers and banks.

Your first instinct may be to go with your local banker, because you know them from doing business with them for other things, such as your checking and saving accounts. But you've probably also heard that mortgage brokers can get you a better interest rate, since they deal with hundreds of lending sources. It can be confusing, but there’s a third source of funding that combines the best of both--the correspondent lender.

In order to understand the differences, let’s look at how the lending process works in each case. Mortgage bankers are given rate sheets by their institutions, telling them what interest rates they can quote to their clients on any given day. There’s only so much a bank can do, with regard to interest rates, because it needs to remain profitable in order to stay in business.

Mortgage brokers have an advantage in that regard. They're not loaning their own money, and are free to "shop your loan around," looking for the best terms from various lending sources. They make their money by getting loans at discount prices and then marking them up, making money on the difference. Since they have many sources to choose from, they can often find loans at lower rates than most banks.

The third alternative, correspondent lenders, combines the best features from both groups. Correspondent lenders are similar to mortgage bankers in that they make the lending decision and fund the loan with their own money or credit line. However, as soon as a loan has closed, it’s sold to another lender at a previously negotiated price. It’s the best of both worlds for you as a borrower. You'll be dealing with the banker who is funding your loan, yet that banker is able to shop your mortgage around, which can obtain you a lower interest rate.

Correspondent lenders can sometimes be difficult to find, since they're generally smaller institutions, operating on a regional basis, and it can be hard to tell whether a lender is a broker or a banker, based solely on the company’s name. One way to find out is by visiting the lender’s website, if they have one. You'll normally find a button you can click that will bring up a page containing a detailed description of the company. If the lender doesn't have a website, you may find their phone number in the Yellow Pages.

Although they may not always be easy to locate, with a little digging, you may find that a correspondent lender offers an attractive alternative to a banker or mortgage broker when it comes to shopping for your next home loan.

© Copyright 2004 Jeanette J. Fisher All rights reserved.

---

About the author:

Jeanette Fisher is the author of "Doghouse to Dollhouse for Dollars: Using Design Psychology to Increase Real Estate Profits," "Credit Help! Get the Credit You Need to Buy Real Estate," and other books. Real estate financing questions? Visit the new Real Estate Credit Help Center for articles, Credit Tips ezine, and blog: http://www.recredithelp.com




Circulated by Article Emporium

---

 This is a Snippet   Read More

 

2nd Mortgage
...
2nd-mortgage.html

Ameriquest Mortgage
...
ameriquest-mortgage.html

Argent Mortgage
...
argent-mortgage.html

Bad Credit Mortgage
...
bad-credit-mortgage.html

California Mortgage
...
california-mortgage.html

Chase Manhattan Mortgage
...
chase-manhattan-mortgage.html

Chase Mortgage
...
chase-mortgage.html

Countrywide Mortgage
...
countrywide-mortgage.html

Current Mortgage Interest Rate
...
current-mortgage-interest-rate.html

Current Mortgage Rate
...
current-mortgage-rate.html

Exclusive Mortgage Lead
...
exclusive-mortgage-lead.html

Florida Mortgage Company
...
florida-mortgage-company.html

Florida Mortgage
...
florida-mortgage.html

Florida Refinance Mortgage
...
florida-refinance-mortgage.html

Free Mortgage Lead
...
free-mortgage-lead.html

Gmac Mortgage
...
gmac-mortgage.html

Green Point Mortgage
...
green-point-mortgage.html

Home Mortgage Banker
...
home-mortgage-banker.html

Home Mortgage Calculator
...
home-mortgage-calculator.html

Home Mortgage Interest Rate
...
home-mortgage-interest-rate.html

Home Mortgage Loan California
...
home-mortgage-loan-california.html

Home Mortgage Loan
...
home-mortgage-loan.html

Home Mortgage Rate
...
home-mortgage-rate.html

Home Mortgage Refinancing
...
home-mortgage-refinancing.html

Home Mortgage
...
home-mortgage.html

Interest Only Mortgage
...
interest-only-mortgage.html

Internet Mortgage Lead
...
internet-mortgage-lead.html

Lowest Mortgage Rate
...
lowest-mortgage-rate.html

Mortgage Banker Association
...
mortgage-banker-association.html

Mortgage Broker Lead
...
mortgage-broker-lead.html

Mortgage Broker
...
mortgage-broker.html

Mortgage Calculation
...
mortgage-calculation.html

Mortgage Calculator
...
mortgage-calculator.html

Mortgage Company
...
mortgage-company.html

Mortgage Interest Rate
...
mortgage-interest-rate.html

Mortgage Irwin
...
mortgage-irwin.html

Mortgage Job
...
mortgage-job.html

Mortgage Lead Generation
...
mortgage-lead-generation.html

Mortgage Lead
...
mortgage-lead.html

Mortgage Lender
...
mortgage-lender.html

Mortgage Loan Calculator
...
mortgage-loan-calculator.html

Mortgage Loan For Bad Credit
...
mortgage-loan-for-bad-credit.html

Mortgage Loan Lead
...
mortgage-loan-lead.html

Mortgage Loan
...
mortgage-loan.html

Mortgage Payment Calculator
...
mortgage-payment-calculator.html

Mortgage Rate Calculator
...
mortgage-rate-calculator.html

Mortgage Rate
...
mortgage-rate.html

Mortgage
...
mortgage.html

National City Mortgage
...
national-city-mortgage.html

Option One Mortgage
...
option-one-mortgage.html

Principal Residential Mortgage
...
principal-residential-mortgage.html

Refinance Home Mortgage
...
refinance-home-mortgage.html

Refinance Mortgage Loan
...
refinance-mortgage-loan.html

Refinancing Mortgage
...
refinancing-mortgage.html

Reverse Mortgage
...
reverse-mortgage.html

Second Mortgage
...
second-mortgage.html

Today Mortgage Rate
...
today-mortgage-rate.html

Well Fargo Home Mortgage
...
well-fargo-home-mortgage.html

Well Fargo Mortgage
...
well-fargo-mortgage.html

Wells Fargo Mortgage
...
wells-fargo-mortgage.html

An Infinity Mortgage
About The AuthorJenny Barclay majored in math. and economics, and obtained a masters in viability of banking insti...
an-infinity-mortgage.html

Refinance Mortgage
...
refinance-mortgage.html

10 Easy But Essential Steps For Home Selling Success
...
10-easy-but-essential-steps-for-home-selling-success.html

10 Ways To Boost Your Credit Score
...
10-ways-to-boost-your-credit-score.html

12 Credit Safety Tips Credit Watch
...
12-credit-safety-tips---credit-watch.html

4 Good Reasons To Get A Refinance Home Loan
...
4-good-reasons-to-get-a-refinance-home-loan.html

4 Things To Watch Out For When Choosing A Mortgage Company
We all know that there are a lot of mortgage companies out there. But how do you know which compa...
4-things-to-watch-out-for-when-choosing-a-mortgage-company.html

40 Year Mortgages An Alternative To Interest Only Loans
Interest-only loans are quickly becoming a mainstream loan product. Borrowers who were initially turned-off by...
40-year-mortgages--an-alternative-to-interest-only-loans.html

5 Magic Points Should I Buy Or Rent My Home
...
5-magic-points--should-i-buy-or-rent-my-home.html

5 Things How Credit Report Rating Can Save You From Ficti
Let us see the bigger picture why there is a stirring need to check our credit report rating. To know the creditwor...
5-things-how-credit-report-rating-can-save-you-from-ficti.html

5 Things In Selecting The Best Mortgage You Should Know
About The AuthorPaul Kellum represents a fu...
5-things-in-selecting-the-best-mortgage---you-should-know.html

5 Things To Look For In A Property Appraiser
...
5-things-to-look-for-in-a-property-appraiser.html

5 Tips For Savvy Use Of Your Home Equity Line Of Credit
Tapping your home's equity to pay college expenses, consolidate cred...
5-tips-for-savvy-use-of-your-home-equity-line-of-credit.html

5 Ways To Raise Credit Score
It's not as hard as you think to raise credit score. It's a wel...
5-ways-to-raise-credit-score.html

6 Key Points To Evaluate Online Lenders
...
6-key-points-to-evaluate-online-lenders.html

6 Reasons For Investing In Florida Investment Property
...
6-reasons-for-investing-in-florida-investment-property.html

6 Things To Consider Before Refinancing
Perhaps you’re a homeowner in need of some qu...
6-things-to-consider-before-refinancing.html

6 Things You Must Know Before Buying A Home
Before you commit your hard earned dollars to mo...
6-things-you-must-know-before-buying-a-home.html

6 Ways To Buy Real Estate Without A Deposit
...
6-ways-to-buy-real-estate-without-a-deposit.html

7 Must Know Facts About Free Credit Report
<!--google_ad_client = ...
7-must-know-facts-about-free-credit-report.html

A Beginner S Guide To Buy A House
...
a-beginner-s-guide-to-buy-a-house.html

A Few Points About Interest Rates
...
a-few-points-about-interest-rates.html

A Fresh Start For Family Finances In 2005
While 40% to 50% of us make New Year’s resolutions on January 1—a ritual that has existed since ...
a-fresh-start-for-family-finances-in-2005.html

A Guide To Uk Buy To Let Mortgages
...
a-guide-to-uk-buy-to-let-mortgages.html

A Home Loan Can Help You Own Your Dream Home
Owning your dream home need not just be a dream. You can own it with a h...
a-home-loan-can-help-you-own-your-dream-home.html

Add A Few Dollars To Your Mortgage Payment
...
add-a-few-dollars-to-your-mortgage-payment.html

Adjustable Rate Mortgages Understand The Benefits Compa 2
Adjustable rate mortgages can be very tempting to home buyers, yet...
adjustable-rate-mortgages---understand-the-benefits-compa-2.html

Adjustable Rate Mortgages Understand The Benefits Compa
...
adjustable-rate-mortgages---understand-the-benefits-compa.html

Adjustable Rate Mortgages Offer Alternatives For Home Buyers
About The AuthorW. Troy Swezey is the author of “ADJUSTABLE RATE MORTGAGES ...
adjustable-rate-mortgages-offer-alternatives-for-home-buyers.html

Advantages And Disadvantages Of A Reverse Mortgage
...
advantages-and-disadvantages-of-a-reverse-mortgage.html

Adverse Credit Mortgage Loan Persistence Is The Key To 2
People with bad credit that are looking to get a...
adverse-credit-mortgage-loan---persistence-is-the-key-to-2.html

Adverse Credit Mortgage Loan Persistence Is The Key To
...
adverse-credit-mortgage-loan---persistence-is-the-key-to.html

All About Secured Homeowners Loans
...
all-about-secured-homeowners-loans.html

All You Wanted To Know Of Bad Credit
...
all-you-wanted-to-know-of-bad-credit.html

Apartment Financing Explained 2
So you’re interested in entering the world of property management? Ha...
apartment-financing-explained-2.html

Apartment Financing Explained
...
apartment-financing-explained.html

Apartment Loan 101
So you’re interested in going into business as a property manager? Have you given any ...
apartment-loan-101.html

Apply For Home Mortgage Loan Online With Bad Credit Th
So, you’ve found the perfect home. You’ve already decided where to place each piece of your furn...
apply-for--home-mortgage-loan-online-with-bad-credit---th.html

Apply For A Mortgage Keys When Applying For A Mortgage
About The AuthorWritten by Carrie Reeder, Owner of www.abcloanguide.com. Carrie's website is an informational mortgage ...
apply-for-a-mortgage--keys-when-applying-for-a-mortgage.html

Apply For Home Mortgage Loan Online With Bad Credit Thi
...
apply-for-home-mortgage-loan-online-with-bad-credit---thi.html

Applying For A Home Loan
By Jakob Jellinghttp://www.cashbazar.comApplying for a home loan may not be the most ex...
applying-for-a-home-loan.html

Applying For A Home Mortgage Loan Online The Pros And
If you have considered applying for a home loan mortgage onlin...
applying-for-a-home-mortgage-loan-online----the-pros-and.html

Applying For A Home Mortgage Loan Online The Pros And Cons 2
...
applying-for-a-home-mortgage-loan-online---the-pros-and-cons-2.html

Applying For A Home Mortgage Loan Online The Pros And Cons
...
applying-for-a-home-mortgage-loan-online---the-pros-and-cons.html

Foreclosure Property Deals
...
foreclosure-property-deals.html

Foreclosure Scams To Be Aware Of
...
foreclosure-scams-to-be-aware-of.html

Foreclosures Nationally On The Rise
...
foreclosures-nationally-on-the-rise.html

Fortune 500 Budgeting For Our Personal Lives
...
fortune-500-budgeting-for-our-personal-lives.html

Foster Home Uses Pay Option Mortgage Loan For California
...
foster-home-uses-pay-option-mortgage-loan-for-california.html

Free Money Saving Auto And Home Loan Tips
...
free-money-saving-auto-and-home-loan-tips.html

From Debt To Financial Freedom
...
from-debt-to-financial-freedom.html

Get A Low Apr Mortgage Fast
About The AuthorMr Teddings is an independent advisor who writes mortgage a...
get-a-low-apr-mortgage-fast.html

Get Control Of Your Finances
...
get-control-of-your-finances.html

Get Free Mortgage Quotes From Top Colorado Mortgage Brokers
...
get-free-mortgage-quotes-from-top-colorado-mortgage-brokers.html

Get More By Offering Seller Financing
An example of seller financing: Years ago I bought a rental property, and nine months lat...
get-more-by-offering-seller-financing.html

Get Out Of Debt
...
get-out-of-debt.html

Get Paid To Market Your Real Estate Business
...
get-paid-to-market-your-real-estate-business.html

Get Rich With Mobile Homes
...
get-rich-with-mobile-homes.html

Get Started Managing Your Money
...
get-started-managing-your-money.html

Get That Low Apr Mortgage Fast
...
get-that-low-apr-mortgage-fast.html

Getting A Home Mortgage Is Quite Simple
...
getting-a-home-mortgage-is-quite-simple.html

Guide To Flexible Mortgages
...
guide-to-flexible-mortgages.html

Guide To Home Equity Loans
...
guide-to-home-equity-loans.html

Guide To Home Improvement Loans
...
guide-to-home-improvement-loans.html

Guide To Home Insurance
...
guide-to-home-insurance.html

Guide To Homeowner Loans
...
guide-to-homeowner-loans.html

Guide To Interest Only Mortgages
...
guide-to-interest-only-mortgages.html

Guide To Loan Terms
...
guide-to-loan-terms.html

Guide To Mortgage Terms
...
guide-to-mortgage-terms.html

Guide To Mortgages In The Uk
...
guide-to-mortgages-in-the-uk.html

Guide To Mortgages
...
guide-to-mortgages.html

Guide To Remortgages
...
guide-to-remortgages.html

Guide To Secured Loans
...
guide-to-secured-loans.html

Helpful Hints For First Time Home Buyers
...
helpful-hints-for-first-time-home-buyers.html

Mortgage For Those Twilight Years
...
mortgage--for-those-twilight-years.html

Mortgage Rehabilitation Of Financial Helplessness
About The AuthorAmanda Thompson holds a Bachel...
mortgage--rehabilitation-of-financial-helplessness.html

Mortgage Amortization
A mortgage is a technique that is used to create a lien on real ...
mortgage-amortization.html

Mortgage Consumer Bill Of Rights
About The AuthorSyd Johnson is the Executiv...
mortgage-consumer-bill-of-rights.html

Mortgage Cycling Brilliant Or Risky
...
mortgage-cycling--brilliant-or-risky.html

Mortgage Definitions
About The AuthorJeff Anderson knows his mortgages. He knows what to look for and what pitfalls to avoid. Let him guide ...
mortgage-definitions.html

Mortgage Free In 15 Years
About The AuthorCopyright 2004, by LoanResources.NetTom Levine provides a solid, common sense appro...
mortgage-free-in-15-years.html

Mortgage Glossary Of Terms
...
mortgage-glossary-of-terms.html

Mortgage Information Refinancing Second Mortgage Home
A mortgage is usually the biggest purchase that an individual makes, and because o...
mortgage-information---refinancing--second-mortgage--home.html

Mortgage Information
...
mortgage-information.html

Mortgage Insurance Plans How Good Is Yours
...
mortgage-insurance-plans--how-good-is-yours.html

Mortgage Life Insurance
...
mortgage-life-insurance.html

Mortgage Loan Information Know The Basics When You Refi 2
...
mortgage-loan-information---know-the-basics-when-you-refi-2.html

Mortgage Loan Information Know The Basics When You Refi
...
mortgage-loan-information---know-the-basics-when-you-refi.html

Mortgage Prepayment Penalties Just Say No 2
About The AuthorJakob Jelling is the founder of http://www.cashbazar.com. Visit his ...
mortgage-prepayment-penalties---just-say-no-2.html

Mortgage Prepayment Penalties Just Say No
One of the most common terms found in a new home loan is a prepayment p...
mortgage-prepayment-penalties---just-say-no.html

Mortgage Reduction Solutions
...
mortgage-reduction-solutions.html

Mortgage Sales Hit Problems
...
mortgage-sales-hit-problems.html

Mortgages After Bankruptcy Easier Than You D Expect
Many American consumers fear that they won...
mortgages-after-bankruptcy--easier-than-you-d-expect.html