How Do Mortgage Companies Work?

Video Transcript

"Hi. How do mortgage companies work? There are three, and we are going to talk about those today. Hi, my name is Adriel Torres, and I am the owner of UltimateCreditToday.com. Basically, you have your local bank. You have what is called a correspondent lender, someone who is between a bank and a borrower such as yourself. And finally a mortgage broker. Whether you are the bank, the correspondent lender, or the mortgage broker, you still have to get the money from somewhere, and those people are usually the investors. Wall Street or off-shore banking institutions that provide the money. The local bank will probably give you the lowest rate since their overhead is not as much as a correspondent lender or a mortgage broker that has to pay for leads and pay their employees, and they are local, so trot to your local bank first, and they should be able to give you a mortgage. If you cannot get a mortgage from them, then I suggest that you go to a local mortgage broker and most people know mortgage broker can get them a loan. Again, those are the ways that the bank institutions and mortgage companies work. My name is Adriel Torres, thank you so very much."