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