Question for PROs. - Mortgage loan
Have a question for you pros out there. I'm in the process of shopping
for a new loan. A family, which is also a loan broker offered me a good
rate, with all fees waived.
However, he did promise me that the loan would be financed or "SOLD TO"
a reputable financial institution such as CITIBANK or Washington
Mutual. But the loan pre-approval was from a financial company I've
never heard of. He tells me thats the norm, in a couple weeks the
loan will be "SOLD TO" a bigger company.
What's the catch? Is this normal?
Thanks in advance.
It's pretty normal. I got my mortgage from some financial company (low rates & fees) and my mortgage was sold an additional 2x before ending up with Citi. Now I have a free Citi checking/savings account because of the mortgage.
Why would you care? You sign a legal agreenebt as to the terms of the loan. If someone else buys it, you still pay the same...