Wholesale Mortgage Loans 101: An Introduction

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Hi there, my name is Becky Suedel. I am excited to share my knowledge about loans and financing on this site. The loan process vets applicants to confirm that they have the means to pay back the total amount borrowed plus fees and other charges. During this time, applicants must produce proof of income and other documents to allow the loan processors to complete the application process. On this site, I hope to help prepare my readers for the loan application process. You can read my content daily to learn about how to qualify for a home or car loan in record time.

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Wholesale Mortgage Loans 101: An Introduction

22 March 2019
 Categories: , Blog


Buying a home is a major undertaking that takes a lot of time and consideration if you want to get the mortgage that fits your life the best. Working with a wholesale mortgage service is a good way to make this process a positive experience, but a lot of people do not know exactly what a wholesale mortgage lender is. Get a little more familiar with these mortgage lenders, so you can understand their overall value for you as a prospective mortgage borrower. 

What's the difference between wholesale and retail mortgage loans?

Retail loans are mortgage loans that come directly from the lender. For example, you may walk into a bank and get a mortgage loan through the bank that is fully and wholly handled by that bank and no one else. Wholesale mortgage lenders are a bit different, however. Instead of being the lender, the entity acts as a sort of broker who works with multiple lenders to try and find you the home loan you need. 

What are the perks of a wholesale mortgage loan?

There can be several advantages to getting a wholesale mortgage loan. Your biggest advantage is you may have a greater chance of finding approval for the loan because multiple lenders can be involved. A few other perks of a wholesale mortgage include the following:

  • The potential to take part in different loan programs that best suit your needs as a borrower
  • The chance to find the right lender from a pool of the best across the state 
  • A possibility of getting a lower interest rate because the broker will negotiate on your behalf

A lot of people who get a wholesale loan tend to be happier with things like the payment terms, associated fees, and loan offers they get. 

Is there such a thing as a bad credit wholesale lender?

Just as there are direct lenders who specialize in working with borrowers who do not have bad credit, there are also wholesale lenders who can do the same, but they may be slightly harder to find. The wholesale lender who specializes in working with borrowers with bad credit will work with banks and brokers who are capable of offering home loans to people who do not have the best credit rating. For example, they may work with lenders who offer USDA Streamline Assist to help people with bad credit get a loan a little easier.