Wholesale Mortgage Lender

There are two main types of lenders. They are the retail and the wholesale mortgage lenders.

Retail lenders are the banks, brokers and internet sites such as Lending Tree.

Wholesale lenders are the Fannie May’s, the Freddie Mac’s, the Jennie May’s, Pension Funds, Insurance Companies and some Private Lenders.

Retail lenders always mark up the mortgage to make a large profit.

Brokers are paid a fee by the lender so you’ll be paying a premium for this. Some internet sites are just name grabbers and get paid a referral fee to send people to the original lender so you’ll still pay more for your mortgage.

When you get a loan from a bank or a broker, you will usually have to pay fees, which can increase the cost of your mortgage.

Brokers will usually negotiate these fees. Banks will usually not.

The savings come in when you find out what the wholesale rate is and when you negotiate according to that rate.