Primary Mortgage Market

The primary mortgage market is where borrowers, such as homebuyers, directly obtain mortgage loans from lenders like banks or credit unions. It’s the initial stage of the home financing process, where lenders assess the borrower’s financial situation and offer loan terms. Once approved, the borrower uses this loan to purchase a home. Lenders then often sell these loans to investors in the secondary mortgage market, enabling them to free up funds to issue more loans. This market plays a crucial role in making homeownership financing available and accessible.