Are All Mortgage Lenders the Same?

The answer to your question is no, there are different types of mortgage lenders and each has what makes it unique. There are those feel one is better than the other. But to know which one has the best deal, you need to know the different types of mortgage companies and compare them. Are there online loans for mortgages? Keep reading and you will find out. There are actually 4 types of mortgage lenders and the one that works well for you depends on the situation you are in.

  • Banks and mortgage bankers.
  • Banks and mortgages bankers are the most common mortgage lenders and it is an excellent option for anyone who prefers to have all his financial accounts in one place. Getting mortgage deals from the banks usually takes some time, mostly more than taking a loan. It is also important to keep in mind that the banks may not offer government-backed loans like for example the FHA loans.

  • Credit unions.
  • Whether you go to a credit union in Hawaii or New York, in most cases they only offer loans to their members. They usually have lower rates as compared to the other lenders but their deals take some time to close. Credit unions just like banks, they may not offer government-backed loans.

  • Mortgage lenders/ companies.
  • The sole purpose of the mortgage lenders is to offer real estate loans and unlike the banks or credit unions, the mortgage lenders usually take care of the whole process. Obtaining the loan from the money lenders like Instant Loan takes lesser time and probably that’s why many people feel like the money lenders are better as compared to the other mortgage loan providers.

  • Mortgage brokers.
  • Just like the name might be suggesting, mortgage brokers will not give you a loan directly. Instead, they have connections with different money lenders as well as loan programs. They will give you access to the money lenders but they cannot assure you how long your loan will take to be processed because they don’t have control over that.

Before shopping for the best…

The very first step to finding a great mortgage is finding the best mortgage lender. In most cases, you will need mortgage lender’s help whether you are a first time home buyer, a homeowner looking for refinancing, an investor who wants to add properties or a buyer selling a property and wants to buy another. Most consumers’ hopes to get the best deal but to get the best deal you need to understand your situation first. Depending on your situation the type of lending institution that you choose might be as important as finding the right mortgage company. To help you understand even further, let us compare some of the mortgage lenders.

The mortgage lenders compared.

The mortgage companies are financial institutions that help people get loans against residential property. Regardless of the type of financial institutions, there will always be a loan officer that is involved in the whole process. The loan officer (originator) will take your application, pull your credit as well as gather the necessary documents for your mortgage loan. Having said that, let us take a look at some of the mortgage lenders that you can choose from:

Banks and mortgage bankers.

Banks are very common and it is where most people try their luck when they have financial problems. The banks usually get their money from their customers as well as investors. Banks will provide you with savings as well as investment options and in addition to that, you can be able to acquire different types of mortgage loans if you qualify. For many people, the first option to try out is usually their local banks and if they get help from there, they don’t even try out other options.

Credit unions.

The credit unions are similar to the banking institutions and the main difference is that they are usually owned by their members (account holders). The credit unions require membership in order to get funds of operation because the money comes from the account holders. Just like the banks, the credit unions offer their members services such as savings, depository, and retirement. The credit unions can also come to your rescue when you are in need of a mortgage loan but you will have to qualify first.

Mortgage lenders.

Mortgage lenders are companies that are similar to the banking institutions and they usually originate and process funds in their own name. The mortgage lenders do not usually service or keep the loans, instead, they sell their loans to the serving companies or the banks. The service providers can then take over and be collecting monthly payments or however the mortgage is supposed to be paid back. The mortgage lenders usually get their money from the investors.

Mortgage brokers.

The mortgage brokers act as the middleman between the mortgage lenders and the homeowners. As already established the mortgage brokers usually don’t lend money directly to the homeowners. Instead, they have access to many lenders and they can help you out get a good deal. In some situations, like when your credit score is not so good, a mortgage broker can shop around and find you a home loan that is not offered by the banks, credit unions or even the money lenders. So if you have a bad credit score and you need a home loan, you might want to consider consulting a broker first.

So which lender will give me the best deal?

Getting the best deal will depend on your definition of “best deal.” It will vary from one homeowner to another, according to their specific needs at that particular time. For example, if you want a loan that is processed fast, you might want to try the mortgage lenders as their loans are usually processed faster compared to getting a loan from the banks or the credit unions. If you have bad credit then using a mortgage broker will be to your best interest. If you want lower costs then credit union is the best deal.

FG Editorial Team
The Founder's Guide Team - Asian Associates with dynamic elements out to make a change.Thank you for visiting our site! If you do have any questions or inquiry, feel free to contact us through our links and please don't forget to follow our social media accounts. It would be our pleasure to help you in any way we can. Always Remember: "Proceed to Succeed". Hoping to hear from you soon!