There are many different kinds of mortgage lenders, and each one specialises in a different part of the market.
Seller-financed
A buyer can get financing from the person selling the property. This kind of deal is very dangerous. Most sellers make money from borrowers in two ways: first, by selling the property to them outright, and second, by getting interest on the money they borrow.
Loans and savings
Mortgages are given out by these mortgage lenders with the money saved by private investors. They are one of the country's biggest mortgage companies.
Mortgage Bankers
When dealing with mortgage bankers, a good rule of thumb is that the bigger the bank, the better the rates they can offer. When working with mortgage bankers, you should be aware that they will be in charge of the loan throughout the whole process, from underwriting to servicing to selling on the secondary market.
Mortgage Brokers
Brokers sell loans on behalf of lenders like mortgage bankers. In the network for giving out loans, they are at the front door. You can find a good mortgage broker by asking friends, coworkers, or searching online.
The credit unions
These are owned by their members, which is why they offer good rates and services. They do the same things that mortgage bankers do.
Here are some things to keep in mind when looking for a mortgage lender.
Finding Mortgage Lenders
Mortgage lenders are easy to find. Ask a real estate agent you know to recommend a lender for you. If you know someone who just bought a house, ask them for a recommendation. Lastly, if you have a phone and a phone book, look in the yellow pages. Combine this with keeping an eye out for ads in print and on the air.
The Department of Commerce is in charge of giving mortgage lenders their licences.
Taking names off of your list
Call the Department of Commerce or look at their website to get rid of some of the names on your list. Click on Enforcement Actions in the section called Consumer Info & Services. Then you will see a list of what has been done against mortgage lenders.
The Department of Commerce adds complaints and other problems with mortgage lenders to its list of mortgage lenders. It has the power to shame a mortgage lender in public if they don't follow the rules. If there is another problem that needs government help, the department may decide to revoke or suspend the mortgage originator's licence.
How to Find the Best Prices
In the real estate sections of local newspapers, you can find mortgage comparison charts. You can find a good mortgage lender here. Call the mortgage companies you're interested in and ask them the following:
- Are these the best terms and rates I can get?
- Will I get a better deal with a different mortgage lender?
- Am I eligible for a better loan that you're not giving me?
Shop around for mortgage lenders. It's just as important to find a mortgage lender as it is to find a home. After all, borrowers and mortgage lenders usually work together for 15 to 30 years. If the couple has been together for that long, they must be perfect for each other.
