Small Mortgage Lending Companies vs. Major Well Known Banks?Hello! I'm in the market for a new home, and I'm using OHFA Down Payment Assistance Grant and to qualify I will have to utilize one of their affliate lenders. There are a few Major banks listed, however the majority are small mom & pop lending companies. I've heard small lending companies often sell... | |
No matter what company you get your mortgage loan from once you have signed the mortgage loan docs they will not change for any reason.
Many banks and lenders, both large and small, sell their mortgage loans to Fannie Mae or Freddie Mac, Real Estate Investment Trust (REIT) as well as other large mortgage investors or the mortgage loans are underwritten by FHA or VA.
By these companies selling your mortgage to another investors does not change the terms of your mortgage loan.
Even if your mortgage loan is sold it might not appear as if it has been sold as your larger banks sometimes service the loan by collecting the mortgage payments each month for the investor they sold your mortgage loan to.
The reason these companies sell mortgages is so they will have additional funds to lend to more borrowers.
Your rate might change before your mortgage loan close because your loan officer fail to lock in your rate.
After the rate has been locked, the number of years has been determined, along with the monthly payments, and you sign your mortgage loan docs are signed by you, nothing ever change because of your mortgage being sold.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"
They will sell your loan, so you have no idea who you will be dealing with, but the terms of your contract will not change when they sell it. Everything you sign up for is binding through the life of the loan, no matter who owns the debt.
