When it comes to mortgages, there are those you get through traditional channels like your bank, and then there are also wholesale options. However, a wholesale mortgage lender doesn't usually lend directly to the consumer. But they can go to a third party like a bank or a credit union and say they have a certain amount of money to put towards mortgages for people who meet certain qualifications. It's then the job of that third party to find you, the customer. So what is the point then of seeking out a loan from a wholesale mortgage lender instead of just getting one directly? Here are some reasons why it might be a good idea for you and your family.
You Might Have a Better Chance of Approval
Sometimes when a bank turns down a potential customer for a traditional mortgage, they'll let the customer know that they also work with a wholesale lender and might have a deal that the customer qualifies for after all. This is because wholesale mortgage lenders typically have requirements that aren't quite as strict. Your credit can't be absolutely terrible, but you can have maybe one or two black marks that would disqualify you from a traditional mortgage and still manage to qualify for one from a wholesale lender. If you've previously been denied, this might be something to look into.
More Options Outside of Your Area
If you live in a small town and the one big bank in your area won't give you a mortgage, you might have to drive to another city to apply for another one. But that's not the case with a wholesale mortgage. Because wholesale mortgage lenders don't deal with the customer directly and outsource to a third party, you can possibly find a wholesale mortgage in your own town even though the wholesale lender is technically in another state.
It's Still Competitive
You might not get the lowest rate possible if you can't qualify for a traditional mortgage loan, but wholesale mortgages are still at least in the ballpark of what you might expect from a retail loan. In other words, this is not a situation where someone is trying to take advantage of those with bad credit. Wholesale lenders absolutely want reliable customers and are willing to be competitive with their rates in order to land them.
Contact a bank or credit union near you that can put you in touch with a wholesale mortgage lender today