Why You Should Consider A Wholesale Mortgage
Are you looking to buy a house in the near future but are worried about getting approved for the loan? If so, you might want to look into working with a wholesale lending company. Never heard of wholesale mortgages before? Here's what you need to know and why this might be a good choice for you.
Wholesale Mortgage Lenders Have a Different Set of Rates
A traditional mortgage loan uses retail interest rates that are based on your credit history and the state of the market at that time. Wholesale mortgage lenders are sometimes willing to overlook some additional black marks on your credit history, but you should know that they work with a different and sometimes higher set of rates. This is not a disadvantage, though, if you can't get approved through a traditional lender.
Wholesale Lending Can Be a Second Chance
To put it another way, wholesale mortgages are an option if you have tried for a mortgage through a traditional bank and have been denied. In other words, you don't have to watch your dream of owning a house go down the drain. Yes, your interest rate and other terms might not be quite as good, but it's still a mortgage, and you will still become a house owner, which is what you want.
You Can't Get Wholesale Rates Just Anywhere
The thing about wholesale mortgages is that you can't apply directly with the wholesale lender itself. Instead, they will first send you one of multiple independent agents or agencies that will handle the application process. In other words, you need to contact a local mortgage broker. Your new broker will review your record and figure out if a wholesale mortgage loan is right for you.
Bad Credit Doesn't Have to Hold You Back
Bad credit doesn't have to hold you down. If you are thinking that there is no reason to even apply for any kind of mortgage because your credit score is so low, think again. Some wholesale lenders are willing to work with people who have bad credit. In particular, there are lenders who will work within the terms of a Federal Housing Administration loan, which is typically aimed at assisting folks with lower incomes or bad credit histories.
A wholesale mortgage lender can provide an opportunity to own a home where you previously thought there was none. Talk to a local mortgage broker today who has access to whole loan rates to get started.
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