Mortgage Bankers are lenders that are large enough to originate loans and create pools of loans, which are then sold directly to any company that does this is considered to be a mortgage banker.
Now that you know what an ARM is and how it works, you may be wondering what the advantages and disadvantages are. So let’s explore that issue.
It used to be that buyers could go house shopping and when they have found their dream home, then they go to get pre-approved.
An adjustable rate mortgage (ARM) has an interest rate that fluctuates periodically. This is in contrast to a fixed rate mortgage, which always has the same interest rate.
When you apply for a mortgage loan, you expect your lender to pull a credit report and look at whether you’ve made your payments on time.
It used to be that lenders mailed out verifications to employers, banks, mortgage companies, and so on, in order to verify the data supplied by borrowers.
When reviewing the credit worthiness of a borrower, an underwriter would make a subjective decision based on past payment history.