Top Mortgage Lenders and Buying in Bulk

While moving around the mortgage market circles you may come across many terms that you have heard before. One term you may not have heard is that of the wholesale mortgage lender. We all know that wholesale is usually synonymous with a good deal, so is this an option you should explore? 

A wholesale lender provides loans through a mortgage broker. The general public does not work directly with a wholesale lender. The wholesaler sets the daily market rate available, and the retail lender marks up the price, so they can stay in business by making a profit.

The wholesale price set by the lender is based on the market. While the wholesale lenders prices are available, most sites are password protected to be accessed by the retail clients that actually "sell" the mortgages. You may come upon a site that is not password protected, but the information would best serve you as a bargaining chip with a retail broker.

The information given by wholesale lenders is extremely detailed and cumbersome. If you did happen upon the information and wanted to use it to your benefit you would have to understand it. Understanding it takes quite a bit of research, so finding a broker that you can trust is a better options.

Once you approach a broker that you would like to work with you can work out a plan to bring up the wholesale market. You would want to know all of the basic information about mortgages. You would say something along the lines of "I am interested in locking in a price on a 20 year fixed rate mortgage, what is the best you can offer me?"

When you consider the wholesale mark up for the buyer, think of all the work that the mortgage lender must do to secure your loan. They need to: run credit checks, pay for advertising to attract customers, counsel and advise the borrower, verify employment, work with the stacks of paper to process the loan and make sure the borrower is aware of insurances needed. This is a large amount of work and it is only fair to pay for it.