Question for PROs. - Mortgage loan

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Oct 18, 2005 1:33 am

Hi,



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.



M. Douglas

Oct 18, 2005 1:58 am

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.

Oct 18, 2005 9:06 am

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...