Who Really Funds Home Loan?
There are two major sources of mortgage financing.
(1)Primary Mortgage Markets- where mortgage loans are originated. It is made up of
(A) Institutional lender- which are Insurance companies, Savings and Loans (Savings bank) and Commercial Banks. They receive most of their deposits from “Household Savings” (Savings of individual depositors)
(i) Insurance Companies-They prefer long terms loans on existing commercial property such as shopping center loans. Mortgage bankers (Loan Correcpondents) usallu negotiate and service their loans.
(ii) Savings and Loan Association(Savings Banks)– Savings and Loanhave the greatest percentage of their asset in real estate loans. This is main source of 1-4 family unit home loans.
(iii) Commercial Bank-Commercial banks prefer short term loans and they are the primary source of construction financing.
(B) Non-Institutional lenders.-Which basically represents Private lender and Mortgage Companies such as Mortgage Bankers and Mortgage Loan correspondents.
(i) Private Lenders-This is major source of Junior loans. Junior loans are second, third and fourth loans.
(ii) Mortgage Companies such as Mortgage Bankers and Mortgage Loan correspondents-They are licensed by Department of Real Estate or by Departmentr of Corporations as Residential Mortgage lenders or California Finance Lenders. They originate conventional loans.
(2)Secondary Mortgage Market- This is resale market place for loans, where existing loans are bought and sold. The participant in the secondary mortgage market have increased the amount of housing credit available to the economy. The major participants in the secondary mortgage market are
(A)Federal National Mortgage Association ( Fannie Mae) - Originally a government agency, it is now a corporation with shares traded on New York Stock Exchange. It was created for the purpose of increasing the amount of housing credit available to the economy. It is concerned primarily with the development of the secondary mortgage market for conventional , FHA, and VA loans originated in the primary mortgage market.
(B)Government National Mortgage Association (Ginnie Mae)-A federal agency within the Deparment of Housing and Urban Development (HUD)
(C)Federal Home Loan Mortgage Corporation ( Freddie Mac) - Works with Fannie Mae and Ginnie Mae to Increase the availability of mortgage money and maintain the secondary market for residential mortgages.
Real Estate Pros
http://www.articlesbase.com/real-estate-articles/who-really-funds-home-loan-121696.html
My home loan is funded, why can’t I get the keys?
My home loan was funded this morning (Friday), but the deed won’t record until Monday. Why am I not entitled to get they keys until the deed records? I start paying interest from the time the buyer gets their money, right?
Sorry, I mean the sellers (the bank we bought it from) have their money. Although we have not asked him to do this, what would the consequences be if our realtor let us in over the weekend to paint? We live in California.
It has to close. This is standard - one business day after funding.
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You have to wait for it to record, it is not offically yours until your name is recorded.
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I assume you mean, "the seller gets their money". It sounds like your loan was funded, but there has not been a formal closing. At the closing, the property is formally deeded over to you, and you sign the mortgage instrument. The seller will not receive their money until the closing. You start paying interest from the date the mortgage instrument is signed, since you can’t grant a mortgage interest in something that you do not own.
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the property isn’t yours until the deed has been recorded which happens on monday…that’s when you’re entitled to the keys. and you start paying interest as soon as the money reaches the title company. generally there are up to 3 days between when you sign the documents at settlement and when the property is recorded and officially yours.
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From other posters comments, this looks like one of those issues that is local in regulation.
In TX, when the title company receives the "funding number" from the Buyer’s lender. This releases the money to the Seller and the Buyer can receive the keys and take possession of the property, if that is what the contract states - "Closing and Funding", not recording the deed.
It is not required that the property be recorded with the taxing entity before the Buyer takes possession.
Sounds like you should check with your real estate agent and title company to see if this is typical in your area.
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