A warehouse lender in Norwich, CT offers financing to other lenders to make mortgage loans. This is short-term funding typically offered to smaller lenders, giving them the liquidity they need to make new loans, then sell loans on the secondary marketplace.
Many small bankers and lenders in Norwich, CT use warehouse lines of credit to finance operations. These loans are paid back once the Norwich, CT mortgages are sold, usually with the warehouse lender receiving a percentage of each home loan made.
Warehouse lending provides credit to mortgage lenders, thus, allowing them to fund loans until the lender sells them in the secondary market. Norwich, CT warehouse loans, which may be anywhere from $5 million to $30 million, are an important means of giving smaller lenders the flexibility they need as well as the ability to offer more loan products to customers.