are many types of mortgage lenders and each one focuses
on a special are of the market:
The seller of the property provides financing to a
buyer. This type of arrangement is highly risky. Most
seller's profit from borrower's twice: first, from the
outright sale of the property, and second, from the
interest of the borrowed money.
Savings and Loans
These mortgage lenders use the savings of private investors
to provide mortgages. They are one of the largest mortgage
providers in the country.
Here's a rule of thumb in dealing with mortgage bankers:
the bigger the bank, the better the rates they can offer.
When dealing with mortgage bankers, you must be cognizant
of the fact that they will control the loan throughout
the whole process, from underwriting to servicing and
even selling it on the secondary market.
Brokers are the ones who sell loans for lenders,
such as mortgage bankers. In the loan distribution
network, they are at the storefront. It is possible
to find a good mortgage broker through friends,
co-workers, and online searches.
Credit unions are owned
by its members and it is precisely for this reason
that they offer good rates and services. They operate
in a similar manner as mortgage bankers.
Finding Mortgage Lenders
It's easy to locate mortgage lenders. If you
know a real estate agent, ask them to recommend
a lender to you. If you know someone who purchased
a home very recently, ask them for a referral.
Finally, you can also turn to the yellow pages.