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Does One Sell Loans?
If you are considering taking a mortgage loan at Mortage One Inc company, you probably wonder if they will sell your loan eventually. Selling a loan is pretty common in this industry, so if a lender decides to sell your mortgage, you shouldn’t be surprised.
So does One sell loans? Mortgage One Inc is a lending company that offers a variety of loans. It can happen that One sells the right to collect on your loan. That, in turn, means you will be making payments to another company.
However, this does not necessarily mean it is a bad thing. Many lenders sell their loans on the secondary market. And here is why.
Why Would a Lender Sell Your Loan?
As you know, a mortgage doesn’t expire, and when you apply for a mortgage, your debt will probably be paid off in the next 15 to 30 years. This mortgage lien usually lasts too long for most lenders, which is why they sell the loans to investing companies. This way, they free up the funds that can be lent to another person. If you have a reverse mortgage, the lender will not be able to sell that loan to another company. The sale of the loan will not affect the terms and conditions of your lien, the only thing that will change is the name of the company, which you will continue paying.
Who Sells Mortgage Loans?
Once your packager finishes all the paperwork, and you purchase your home, do not be surprised if next month you get a mail stating your home loan has been sold to another company. So you will continue to pay the mortgage regularly only to another company, and you will be legally required to do so. Because this new lender or company will have a right to impose foreclosure on you. Here is who can sell a loan:
- Lender – That is a company or financial institution that lends the money. They can also act like originators on the secondary market and sell your loan. Loans are usually sold together as a bond to government-owned or sponsored organizations such as Fannie Mae, Freddie Mac, and Ginnie Mae.
- Servicer – A servicer is an entity or an institution that deals with your mortgage after you have closed on your home; they are the company you send your monthly payments to.
- Investors – These are the companies that purchase mortgages from a lender. It can happen that lenders retain the servicing right but sell your loan. This means you will continue paying to the same company, but this lender will not have your loan in its possession.
A Home Buying Process at Mortgage One, Inc
Mortgage One Inc is a mortgage lender based in California. They offer a variety of loans, such as Fixed and adjustable loans, VA, FHA, and Jumbo loans. They provide competitive interest rates, and you can purchase your first home with 5% of the down payment. And yes, once your mortgage application is finished, Mortgage One will sell servicing of your loan to another company. Here is a step-by-step guide on how to apply for a loan at One.
| Step 1 | Getting preapproval and lender certification. Here is when a lender will check your credit score and financial history to see what kind of loan you qualify for. |
| Step 2 | Application submission. Here is when you will apply for a loan. You can hire a mortgage broker to help you with the paperwork. |
| Step 3 | Processing. At this point, you will have to submit additional paperwork, such as tax statements, tile documents, appraisal reports, and others. |
| Step 4 | Closing. At least three days before you close your loan, you will receive a Closing Disclosure document where all the settlement costs will be presented.Closing. At least three days before you close your loan, you will receive a Closing Disclosure document where all the settlement costs will be presented. |
| Step 5 | Funding. The day after signing closing documents, the funds will be at your disposal. |
| Step 6 | Servicing. Once the transaction is completed, you will receive a letter from a servicing company. This is a company that will receive your payments, insurance, and so on. It can happen that servicing is sold to another company. |
Should You Go With a Lender That Doesn’t Sell Loans?
Well there is no reason why you would only choose lenders who don’t sell loans. Once the loan is sold, the terms and conditions of your agreement will remain the same. So, in essence, this doesn’t affect you by any means. Furthermore, as you can see, there are many parties that are participating in the home purchase process and in home loan applications. As we already listed, almost every party in this process can sell your loan.
However, even though this sale will not affect your terms and conditions, some mistakes can occur. There were cases where people paid extra because the information about loan selling wasn’t processed correctly in the system. To be extra careful, always open all the letters you receive from financial institutions so you know when your loan is sold. And monitor the payments next month. If you have automated payments at one bank, make sure you cancel them before the due date for payment happens. This should all be done automatically by your lender, but sometimes it can make a mistake.
To conclude, there is nothing strange when a lender sells your loan. All you have to do is make sure all the payments you will make in the future are correct and according to your settlement papers.
