Getting a mortgage can be a daunting task. There is so much to know and understand including some pretty confusing language. Borrowers are often confused by mortgage terminology, so in an effort to keep you educated we welcome you to the monthly edition of Mortgage LINGO defined.
LENDER TYPES
PRIME LENDER “A”
A lender that requires a borrower to have excellent credit, stable/qualified employment, and a verified down payment. This lender typically offers the lowest rates in the market with the most flexible repayment terms.
ALTERNATIVE LENDER “B”
A lender that allows for blemished credit and new or not so standard qualified income. This lender generally has higher interest rates than A lenders, and typically shorter mortgage terms.
PRIVATE LENDER
A person and/or entity that lends money in the form of a mortgage. Private lending is typically for borrowers that do not qualify at traditional lending institutions as noted above. Private mortgages generally have higher interest rates, fees and a relatively shorter term.
Need to know what lender type best suits your needs? Call me today to find out more.
