Mortgage Lending Companies- A Closer Look
A mortgage company, also known as a mortgage broker, is a company engaged in the field of originating and processing loans for residential or commercial real estate. A mortgage company, like most businesses, is usually only the issuer of a loan; however, it often conducts credit analyses on behalf of customers, as well as acting as an information-giver to various lending institutions and other parties. It collects information from a borrower regarding their credit history and decides whether or not the customer is a good credit risk. If the mortgage company determines that the borrower poses no threat to bankruptcy, the customer is approved for a loan and given an application form to fill out. The form is then submitted to various lending institutions to obtain the funds necessary for the loan. You may find more details about this at Prime Mortgage company.
In order to obtain funding, brokers often consult with various banks and lending institutions before submitting the application to them. This allows the mortgage company and the various banks to compare risks and cost factors between different applicants. When an applicant secures a loan, the mortgage company and the various banks share a percentage of the total amount of the loan. This is referred to as the origination fee. The brokers collect fees on the basis of the origination fee and the amount of the loan, not the amount of the loan closed by the bank.
Mortgage lending companies are usually available to assist borrowers who are facing the possibility of acquiring a loan through a broker. These organizations specialize in assisting borrowers in obtaining mortgage loans from financial institutions like banks and credit unions. Borrowers who have a good credit history and stable employment can often obtain their loan application approved without having to pay an origination fee or any other fees charged by the mortgage company.