real estate finance - full book (500 pgs)

These loans do not have to meet fnmafhlmc guidelines

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Unformatted text preview: ker? What underwriting guidelines does the lender prefer for the loan package? In addition to how the mortgage broker selects a type of loan and the criteria for selecting a lender, it should be noted that not all loans are available. Investors enact many different loan programs, but lenders may choose not to offer a particular loan program. Lenders become familiar with certain loan programs in light of meeting the loan program criteria and upon reviewing the foreclosure or slow–payment record on the performance of a particular loan. Thus the mortgage loan broker should check with several lenders in advance as to' the availability of a particular loan program. The primary consideration for selecting one conventional lender over another is often not the interest rate, fees, or programs that are available. The main criterion is often the quality of service provided by the lender. This is where an ongoing relationship can be most helpful to the mortgage loan broker. The following list may be helpful in considering the lender with which to establish a regular working relationship: Does the lender offer lock–in loan commitments? For what time period? What is the typical processing and underwriting time? 15-14 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 15: REFINANCING OR NOT AND CHOOSING A LENDER Can you call regularly to check on the status of your loan and receive a friendly response? INSTITUTIONAL The great majority of real estate loans are made by a group of financial institutions referred to as “Institutional lenders” or “financial intermediaries.” They provide the principal source of funds for mortgage lending. Lending institutions such as commercial banks, savings and loan associations, insurance companies, credit unions, and investment companies are financial intermediaries, economic units whose principal function is to transfer capital from those who invest funds to those who wish to borrow. This service is called “intermediation.” Policies – In this role of middle...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.

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