Mortgage Lenders

Mortgage lender is the person who provides money to the borrow at the closing table. In return, the lender receives a note as an evidence for the borrowers debt and obligation to repay along with the lien on the subjected property. Lenders are generally licensed professionals who give you the money either directly or through a third-party to fund your loan. Lenders have various names based on how they acquire their clients and what they do with your loan after it is funded.

There are basically three types of mortgage lenders - one is the retail lender,  another one is the wholesale lender and the last one is correspondent lenders.   

Retail lenders are the one who reaches out directly to the consumers. They perform all the loan origination functions themselves. They are commonly known as direct lender with whom you can have face to face conversation on lending in a bank branch, online or on the phone.

The whole mortgage process is done through a broker. They are not the lenders, in fact they are independent contractors who offer the loan products of multiple lenders, also called as wholesalers. They help in finding potential customer or the borrowers and counsels them on the loans available from different lenders. They also counsel borrowers on any problems involved in qualifying for a loan, takes the borrower's application and also processes the loan.

Correspondent lenders are the mix of broker an retail lenders. They fund loans with their own borrowed money but mostly lock in rates with other lender at the same time.

Mortgage lenders include many community banks, credit unions, and savings and loans companies. The mortgage lenders use money from their customers’ bank deposits to fund loans so they can hold onto the loans and keep them in their portfolios.