Mortgage Basics
first time home buyer Mortgage Basics Intro
first time home buyer Should I Buy a Home
first time home buyer How Mortgages Work
 
Fixed Interest Rates
Adjustable Interest Rates
Fixed or ARMs. which is right for you?
Subprime: Bad Credit
Other Types Of Mortgages
Which lender type is right for you.
In conclusion
first time home buyer Factors that Effect Your Payment
first time home buyer Paperwork & Loan Fees
first time home buyer Loan Processing, Now What?
first time home buyer Atlas, Closing
Which Lender Type Is Right For You?
Lenders come in many shapes, sizes, and types. Choosing the right one according to your needs is the key to getting a low rate mortgage
 

 

  
Find The Best Mortgage Rates
Credit Profile
Property State:
Home Type:
Loan Type:

 

There was a time when most home buyers obtained their mortgage loans through their banks or credit unions. Today, however, there are a number of additional home-financing providers.

Which one is right for you? Let's take a look at the options.

Mortgage banks

A mortgage bank is a direct lender; that is, bank employees alone review your application and make the decision to lend you money. Typically, the bank will sell your loan on the secondary market.

Benefits of a mortgage bank:

  • Reliability: You probably know and trust your local mortgage bank. It is regulated by state and federal agencies and likely has strong ties with your community.
  • One-stop shopping: You deal directly with the source of your loan.
  • Savings: As the loan originator, a bank may save you money in the loan process and/or offer you better terms based on your total assets on deposit with the bank.
  • Speed: A bank also may process your loan faster than other providers.


Risks of a mortgage bank:

  • Limited choice: Mortgage bankers only offer their own programs. To comparison shop, you will need to speak with several lenders.

Mortgage brokers

A mortgage broker is a middleman who may represent the mortgage loan products of hundreds of different lenders. The broker's goal is to match you up with the loan product that best meets your needs at the best price. Once your loan is approved, you will usually deal directly with the loan originator or their mortgage service provider.

Benefits of a mortgage broker:

  • Variety: By shopping across a range of different programs and lenders, a mortgage broker may find you a better fit than a mortgage bank.
  • Qualifying: A mortgage broker can best steer you to the national or regional lenders that are most likely to accept your application based on your financial and personal information.
  • Savings: You may get a more favorable loan rate.
  • Speed: A broker saves you time shopping for a loan.

Risks of a mortgage broker:

  • Hidden costs: Some mortgage brokers attempt to increase their profit by writing hidden costs into your loan. Best hedge: know the loan process and ask questions.
  • Professional oversight: Unlike mortgage bankers, mortgage brokers are not subject to licensing and regulation in all states.

Banks, thrifts and credit unions

Most financial institutions offer a limited menu of loan products just as mortgage banks do. They typically hold mortgages in their portfolios or sell them on the secondary market.

Home builders and real estate agencies

Many large home builders and real estate agencies now own their own on-site mortgage company to make it easier to buy their properties. These affiliated companies may operate as a mortgage banker or broker.

Internet lenders

Mortgage lenders have proliferated on the Internet in recent years, offering fast, easy loans at competitive rates. Some are online channels of brick-and-mortar financial institutions or mortgage brokers, others are Internet-based banks or brokers.

Which lender is right for you?

Depending on your credit history and circumstances, you may benefit by using one source of mortgage loans over another
 
<< Part2d: Other Types Of Mortgages
 
Mortgage Tip: Spend Less Each Month – Refinance Your Mortgage

These days, life seems to come down to monthly payments. If you are stretching to meet your monthly payments on your mortgage, maybe you need to consider refinancing options. If you can get a lower interest rate than you currently have, you'll be able to save substantially on your monthly payment. The key is to look down the road. Don't get yourself into an incredibly low interest 3 year ARM program unless you plan to sell your home or refinance again within that timeframe. Choose a smart refinance plan and you'll save money and maintain your security.
 
 
 
Mortgage Refinance - Mortgage - Credit Card - Debt Relief - Free Credit Report - Student Loan Consolidation
Sitemap - Privacy Policy - Contact Us
Local Mortgage Refinance - Local Debt Consolidation - Local Home Equity Loan - Local Purchase Loan
sponsors:
Copyright LendGo, Inc., 2007. All Rights Reserved