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Types of Mortgage Companies

Friday Aug 31, 2018
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Mortgage Companies vs Banks and Internet Lenders for Home Loans

In today’s mortgage market, you essentially have four types of mortgage companies. They include banks and credit unions, mortgage net branches, mortgage brokers, and internet lenders.

Banks and credit unions essentially lend the borrower their company’s own money, while net branches and internet lenders lend money off huge credit lines they take out from big banks. In comparison, mortgage brokers utilize wholesale mortgage lenders but do not actually lend their own money.

One of the draw backs of using banks, credit unions, internet lenders and net-branches, is they only have one set of underwriting guidelines and one set rate. If a borrower does not fit into their guideline, they are turned down even though they might still be eligible for a loan with another lender. Also banks, internet lenders and net branches have one published rate and when it’s time to lock your mortgage rate, that rate might not be the best available on the market.

Mortgage brokers work with many different wholesale lenders which means many different sets of guidelines. This is a great advantage for borrowers, and because brokers work with many different lenders, we are more likely to find the lowest rates available on the market when its time to lock.

Perhaps the biggest advantage of a mortgage broker like Indigo Mortgage is that we are local and all processing is done right in our local office, not shipped out to another state. You will talk to the same person from application to funding. Indigo Mortgage is your trusted local mortgage broker. If you have any questions about a mortgage loan or refinance of an existing mortgage, give us a call!

Indigo Mortgage is a locally owned and operated company, serving homebuyers in Albuquerque, Rio Rancho, Santa Fe and all across New Mexico. For questions about selecting a mortgage lender, contact Indigo Mortgage in Albuquerque at (505) 836-5700. Indigo Mortgage offers five mortgage divisions including Residential, VA Loans, Reverse Mortgages, Construction and Commercial. They are licensed by the Nationwide Mortgage Licensing System (NMLS #188348), and can provide loans anywhere in New Mexico.

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