Different types of mortgage lenders

Thinking about buying a home? Then, aside from saving for the down payment, you also need to acquaint yourself with different mortgage lenders.

08:13 04 June 2013

If you’re thinking about buying a house, and if you’re more likely to take out mortgage loan, you’d need to know there are different mortgage lenders out there.

 

Your choices include banks, savings and loans associations, mortgage bankers, and mortgage brokers. Let me briefly explain each to help you make well-informed decision.

 

Banks are usually the first option for a lot of people due to their flexibility and because they are usually committed in customizing loan packages for their clients. 

 

Savings and loan associations, on the other hand, specialise in savings deposit and mortgage loans. Other than that, they work the same way as banks. 

 

Mortgage brokers are different from the first two because they do not fund the loan. Instead they work on behalf of several different lenders. They make money for charging commission for their services. 

 

Lastly, mortgage companies are the ones that sell the loans to investors and they are the principal sources for mortgage loans.