| According to Carrier Reeder, debt adviser: | | | | offering. |
| The most important type of loan is home loan | | | | |
| and as in other cases the choice of lenders | | | | According to Kevin Stith, a debt adviser, |
| are immense. She analyses the various types | | | | financial institutions, banks and private |
| of loans available and the options offered by | | | | lenders offer loans or mortgages. The reason |
| them. The various types of lenders are a. | | | | to approach a private lender is when the |
| Mortgage Banker, b. Mortgage broker c. Credit | | | | borrower has a bad credit rating. The |
| Unions, d. Savings and Loans and e. | | | | private lenders ask for security for the |
| Government Loans. | | | | loans advanced by them. The security is |
| | | | usually in the form of property or house. |
| According to Reeder, in case of Mortgage | | | | The private lender here takes a risk by |
| Banker one person is responsible for the | | | | lending loan to someone who has a bad credit |
| borrower from beginning to end, who guides | | | | rating, hence to reduce his risk he asks for |
| through the various process of loan | | | | a higher fees and property as security. |
| facilities, the various offers, choosing the | | | | |
| loans which best suits one, the time period | | | | The difference between applying for a loan |
| etc he also follows on the repayment | | | | online and through a broker is that the rates |
| factors, interest involved and till the end | | | | of interest are fixed in case of a online |
| when the loan is all paid up. A Mortgage | | | | loan facility and in case of a broker the |
| Broker on the other hand is engaged when | | | | rate of interest can be negotiated and |
| there is not a good credit history for a | | | | various facilities which suit the borrower |
| borrower, he acts as a mediator between the | | | | can be offered by the broker. It is said |
| bank and the borrower and gets the entire | | | | that in case of a mortgage broker, if a |
| process done. A Credit Union is present in | | | | business deal is fixed and the lender seems |
| many of the associations or groups, in case | | | | to gain advantage then he may offer may |
| the borrower belongs to such association then | | | | facilities to the borrower. Also according |
| he/she can check out the various loan | | | | to Stith the market is full of borrowers and |
| facilities offered by them. The best bet for | | | | hence shopping around for one who offers |
| a borrower is the local savings and loans | | | | better deal is definitely advantageous to the |
| groups. Government does not themselves offer | | | | borrower. |
| loans but back some of the loans already in | | | | |