Where can I Find a Mortgage Lender?
Finding your Mortgage Lender
Shopping for a house is only slightly less stressful than shopping for a loan to pay for said house. Even if you don’t realize it right now, you’re in a world full of choices, from local credit unions to big mortgage brokers. You can find a mortgage lender almost anywhere, you just have to start asking!
Types of Mortgage Lenders
There are four main types of lenders you will encounter as a home buyer. Each can provide you with a good mortgage loan, but some are more flexible than others. In addition, you might notice that your closing costs vary between the different lender types. The most common are:
If you walked into the bank where you have your checking account right now, you most likely could discuss their mortgage options. Most mid- to large-sized banks have a mortgage division, even if they don’t have a rep in the particular branch you use.
Ask the teller who to speak to about a mortgage loan. Mortgage bankers tend to have fairly low closing costs because they’re loaning their company’s own money and they’re typically paid on salary, not on commission. You will get a good deal with a banker if they have a product to fit you, but their options are usually limited to just a couple of programs.
Mortgage brokers represent the farthest extremes of the profession -- they can be lifesavers or make things more difficult for you. A broker essentially acts as a middleman between you and a portfolio of different lenders and investors who want to loan money to people who are acceptable risks. Who is acceptable varies across programs, so if you can’t get into one, there may be an alternative for you.
Be careful with mortgage brokers, however, because they not only loan using standard and well-regulated products, but can also make loans called non-qualified mortgages, which may have exotic features that can get you into trouble down the road. Make sure you understand everything you’re being told and read the entire agreement before signing anything. You may also pay extra closing costs to use a broker since they are typically paid on a commission, which has to also figure into the final fees.
Your friendly neighborhood credit union is a great place to get a mortgage if you can qualify for their programs. They tend to be fairly flexible for members, are capable of making small loans that many big banks won’t mess with anymore and they truly have your best interests at heart. It’s easier than ever to sign up for a credit union, so it’s definitely an option to consider. They, too, will offer lower closing costs since they’re loaning the bank’s money. Credit unions sometimes hold on to their loans instead of selling them off to the highest bidder like a standard mortgage banker and continue to service them for their lifetimes.
You can also get mortgages directly from government agencies in some special circumstances. For example, the United States Department of Agriculture has a direct loan program that is offered on a limited basis through partner lenders, but can also be initiated through a designated arm of the department.
To make a long story short, you can find a mortgage lender almost anywhere. When shopping for a mortgage, it can’t hurt to apply to a few to find the very best rates possible. Of course, You can always talk to the experts at home.loans, and we'll help match you with a lender that will take care of your every home loan need.