Most homeowners take out a mortgage on their homes. It is important to understand the difference between a lender and a servicer. This article from Realty Times does a great job explaining the role of each as it pertains to your mortgage. Let me know if you have any questions about the article or if you need help with any of your real estate needs.
Tim Houterloot - Broker/Realtor
317-997-0165 - Cell
indyhomepro@outlook.com
Source: Realty Times | Repost Houterloot 4/21/2023 -
When you get a home loan, you’ll begin the process by choosing a lender to work with. If you’re the borrower, from your perspective, a lender is a term that will include every party that’s part of your loan, but in reality, lenders don’t handle everything. A mortgage servicer might also take over your loan after you close on it.
A mortgage lender will either be a group of investors or a financial institution providing money to borrowers so they can buy or refinance homes. A mortgage servicer will deal with the administration of a loan on a day-to-day basis until you pay it off.
Some lenders service their loans, but most are too small to make a profit doing so, which is where a loan servicing company becomes part of the situation.
Read the full article...
