In which market does a borrower apply for a loan?

A borrower applies for a loan in the primary market, where financial institutions like banks, credit unions, and mortgage companies engage directly with consumers to originate loans. In this market, borrowers can secure financing for purchasing homes or refinancing existing loans. The primary market emphasizes the initial transactions between borrowers and lenders, focusing on loan origination, terms, and conditions tailored to the borrower's needs.

The secondary mortgage market, on the other hand, is where existing mortgages are bought and sold among investors, allowing lenders to free up capital to issue new loans but not where borrowers apply. The conventional mortgage market refers to loans that are not insured or guaranteed by the federal government, distinguishing it from government-backed loans, but it doesn't specifically address where a borrower would apply. The private mortgage market involves loans from private entities or investors, but again, it does not represent the direct point of application for borrowers. Thus, the primary market is the correct context for where borrowers initiate their loan applications.