How to find out legitimacy of a mortgage lender?

mortgage lender

The United States mortgage industry is the most complex and largest home financing market in the globe, making up USD 20.5 trillion of its GDP. Recent statistics indicate that the total value of outstanding mortgage debt reached USD 15.4 trillion last year.

All these numbers point out that there is a wide range of available mortgage services in the country. However, verifying the legitimacy of these loan companies can be challenging, especially with the rise of made-up testimonials and sleek-looking advertisements.

One of the best ways to determine the legitimacy of mortgage services is to check with the Better Business Bureau (BBB). Usually, a reliable and trusted organization like Entrust Funding includes their loan company name, business type, website URL, phone numbers, and emails on the BBB database.

Add the postal code or location of the company to narrow your search. Interestingly, you may also utilize the database tool to look for loan companies that are certified members of the BBB.

Alternatively, contact the attorney general of your state, banking oversight agency, and financial registration agency. Remember that state law requires loan brokers and companies to register with these state agencies for eligibility.

Better yet, observe their payment requirements and make sure that they will disclose charges upfront and subsequently subtract them from the loan amount. Be wary of loan companies that promise massive loan offers in exchange for upfront payments.

What Does Mortgage Servicing Mean?

In general, loan or mortgage servicing alludes to the technical aspects of a loan from the dispersion of the proceeds to the payment process.

In most cases, mortgage servicing involves sending payment statements and gathering payments monthly, as well as preserving records of balances and payments.

Moreover, the collected payments are then remitted to numerous parties like insurance and taxes, interest payments, mortgage guarantors, and remitting principal.

What are the Basic Types of Mortgage Services?

Popular types of services include conventional or fixed-rate, interest-only, and an adjustable-rate mortgage. More often than not, people opt for a traditional mortgage because it comes with fewer risks and is usually available in 10, 20, or even 40-year terms.

Interest-only mortgage loans, meanwhile, provides you an option to only pay the interest during the first five or ten years of the loan, while adjustable-rate mortgages only change its rate based on economic changes.

Besides that, reputed loan companies like Entrust Funding also provide individual assistance for veterans and first-time buyers. VA loans make it faster for US army veterans and their spouses to buy homes since they get an unconditional guarantee from the Department of Veteran Affairs.

First-time buyers, on the other hand, can resort to mortgages guaranteed by the Federal Housing Administration (FHA). Interestingly, FHA loans are packed with built-in mortgage insurance that safeguards buyers from the possibility of failing to repay the loan.

Ordinarily, FHA loans require smaller down-payments and enable aspiring homeowners to eliminate the PMI payment and qualify for refinancing. An FHA loan might be the right option if you are unable to meet qualification requirements like higher credit scores.

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