Real Estate Financing Basics
Posted on September 26, 2008
Filed Under Real Estate Definitions |
Most potential investors have no idea that the qualifying process could be so easy. There are many types of loans to help individuals in almost any situation. Today’s lenders make it that easy for most anyone to get some type of financing. In fact, now it is almost harder not to qualify for financing than to qualify. So don’t be intimidated by the process, it is really quite simple and your lender will walk you though every step. Lenders are on your side; they want you to qualify for their loan because that is how they make their living. Lenders do not get paid unless the loan gets approved, so it is their own best interest to find a loan that will be approved.
There are many different lending institutions that make their money through loan financing. There are banks, mortgage brokers, credit unions, private money firms and money lenders. Before you decide which source of financing is right for you, it is essential that you understand their differences and some definitions.
The Lender is the source of the money. It could be a bank, a credit union or a private investor. The person you sit in front of when you apply for your loan is merely the lender’s representative.
The Mortgage Broker is a company or individual that represents many different lenders. Thus, they have access to a number of different loan programs. They work as the facilitator of the loan by connecting the lender to the borrower.
The Loan Officer is the person at the lending institution or mortgage broker that facilitates the loan process. The loan officer works directly with you to gather the borrower’s qualifying information. Ultimately, the officer doesn’t make qualifying decisions. The officer usually just pre-screens or pre-qualifies the borrower before sending the application to the lender.
The Underwriter is the decision maker. The underwriter works for the lender. They verify the applicant’s documentation and financial information. The underwriter decides whether or not the applicant meets the criteria set by the lender and qualifies for the loan.
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Good Book on Structured Real Estate Finance?
Any recommendations?
should include basics but also cover advanced levels …
Book on structured finance in general?
There is a website that gives you information about all sorts of Real Estate books. Have a good look you will find what you want.
http://www.realestatebooks.org/
References :
http://www.realestatebooks.org/