Mortgage origination is a type of financial service. This service entails the creation of new mortgage loans.
Banks and mortgage brokers in Bangkok provide these services specifically to foreigners.
Mortgage origination differs from loan servicing. Loan origination focuses on creating loans, while loan servicing manages existing loans.
Examples include the collection of payments and managing escrow accounts.
Three features popular in mortgage origination include application processing, underwriting, and funding. Application processing involves collecting financial information from borrowers.
Underwriting assesses the creditworthiness of the borrower. Funding refers to the disbursement of loan funds to the borrower or seller.
Common features of mortgage origination encompass credit checks, income verification, and property appraisal. Credit checks assess the borrower’s credit history.
Income verification confirms the borrower’s ability to repay the loan. Property appraisal determines the value of the property being purchased.
Unusual features of mortgage origination might include flexible repayment schedules, the inclusion of foreign income for qualification, and cross-collateralization. Flexible repayment schedules offer varied payment options.
The inclusion of foreign income allows non-local income to qualify. Cross-collateralization uses additional properties as security for the loan.
Unique features specific to mortgage origination in Bangkok for foreigners include leasehold mortgage options, foreign quota financing, and developer financing programs. Leasehold mortgage options allow foreigners to mortgage leasehold properties.
Foreign quota financing pertains to loans for properties within the foreign ownership quota. Developer financing programs offer direct financing from property developers.
Comparing mortgage origination to similar financial services reveals distinct differences. Mortgage origination uniquely combines application processing, credit assessment, and legal documentation specific to property loans.
Unlike general lending practices, mortgage origination incorporates property-specific risk assessments and legal frameworks.
For further details on terms used in this discussion, please refer to our glossary about Bangkok real estate.