Types of Mortgage Lenders
Banks
Yes, you can take out a mortgage through your bank. Usually, if you have a good, long-standing relationship with your bank, they may lower your closing costs and interest rate. As with direct mortgage lenders and credit unions, banks process their mortgages in-house.
Yes, you can take out a mortgage through your bank. Usually, if you have a good, long-standing relationship with your bank, they may lower your closing costs and interest rate. As with direct mortgage lenders and credit unions, banks process their mortgages in-house.
Credit Unions
Credit unions will give out mortgages, but you have to be a member to get one. If you are a member, there’s a good chance they might have lower closing costs and possibly a lower interest rate. The downside, sometimes a credit unions underwriting guidelines can be a lot stricter than most other lenders.
Credit unions will give out mortgages, but you have to be a member to get one. If you are a member, there’s a good chance they might have lower closing costs and possibly a lower interest rate. The downside, sometimes a credit unions underwriting guidelines can be a lot stricter than most other lenders.
Direct Mortgage Lender
Direct lenders are the actual lenders of the home loans, so they typically keep the entire process in-house, from loan application to loan servicing. A direct lender’s job is to make and fund mortgages. Unlike mortgage brokers, direct lenders approve your mortgage applications and loan you money directly because they are the lender.
Direct lenders are the actual lenders of the home loans, so they typically keep the entire process in-house, from loan application to loan servicing. A direct lender’s job is to make and fund mortgages. Unlike mortgage brokers, direct lenders approve your mortgage applications and loan you money directly because they are the lender.
Mortgage Broker
Mortgage brokers are middlemen for a variety of lenders, which means they can offer multiple mortgage quotes for you to consider but they do not directly approve or service your loan. They basically shop multiple lenders for you.
Mortgage brokers are middlemen for a variety of lenders, which means they can offer multiple mortgage quotes for you to consider but they do not directly approve or service your loan. They basically shop multiple lenders for you.