Many people do not understand different programs of loan.
they keep asking why some orgnixation ask for less doc.. compared to the others.
1. Learn about Mortgage Player
A. Primary Market
** Wholesale Mortgage Broker : contracts with many lender
** Retail Bank : direct loan to borrower.
** Wholesale Lneder : cntract to broker or loan direct to borrower.
B. Secondary Market
**GSE ( Government spnsored enteprise ) : Fannie Mae / Freddie mac
==> these group buy the Mortgage from Primary market
=> they require regulation to buy the loan from the primary market
** That is why regardless of what company in primary market player you contact , they all require same documents in order to sell your loan to secondary market.
Why they sell your loan to secondary market ?
==> They need cash to lend you the mortgage again.
** Then why some company ask for less documents ?
==> this is so called
A. Private lender : higher interest
B. Portfolio lender : they keep mortgage note by themselves not to sell
to secondary market .
==> that is why they do not ask for same documents because they do not need to meet
the requirement of secondary market
===> In this case , what do you think about the interest ?
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