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Real estate glossaryNational exam concept

Primary mortgage market

The primary mortgage market is where borrowers obtain new mortgage loans directly from originators such as banks, credit unions, mortgage companies, and other lenders.

Exam area: Financing

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What does “primary mortgage market” mean in real estate?

The primary mortgage market is where borrowers obtain new mortgage loans directly from originators such as banks, credit unions, mortgage companies, and other lenders.

How is “primary mortgage market” different from the closest wrong answer?

The primary market creates loans with borrowers. The secondary market buys, sells, pools, or securitizes existing mortgage loans after origination.

What is the Georgia-specific rule?

A Georgia homebuyer applying for a new loan deals in the primary market even if the lender expects to sell the loan immediately after closing.

Worked exam example

Scenario

A credit union underwrites an applicant, funds the purchase loan, and receives the signed note and security deed.

What is the most common exam trap?

Trap correction

Classify the transaction taking place now, not the institution's later plan for the loan.

Original exam check

Apply the definition

A Savannah buyer gets a new purchase loan from a mortgage company that plans to sell the loan to an investor the week after closing. In which market did the buyer obtain the loan?

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Continue with Financing complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.