A warehouse lender will provide financing for other lenders to create home loans. Warehouse lending in Burbank, CA is essentially a line of credit extended by a bank to a lender to fund a mortgage that a potential home buyer initially used to purchase a home. Typically, this type of loan is a short-term funding program that will provide enough fluidity to create new loans and then sell existing loans on the secondary market.
Many small lenders (lenders who only lend a small amount of money) and bankers in Burbank, CA use a warehouse loan as a line of credit to fund their smaller operations. The warehouse loans are typically paid back once the loans are sold. The lender of the warehouse loan in Burbank, CA will get a percentage of each mortgage loan sold.
A Mortgage Warehouse line of credit in Burbank, CA may be anywhere from $5 million to $30 million. Warehouse loans will be underwritten and approved by the final investor.
A Warehouse Lender will be given as much flexibility as possible, but still will allow a wide range of loans to their customers such as: