| The mortgage market is extremely competitive, so | | | | If you are already a member of a credit union, then this |
| much so that lenders are vying for your business. If | | | | can well be one of the best places to shop around for |
| you are planning on going for a new home mortgage, | | | | a new home mortgage. They can provide you with |
| then it’s time you know the various kinds of lenders | | | | lucrative low interest rates which you can leverage to |
| who are involved. | | | | your advantage. There are many workplaces, |
| Mortgage banker | | | | associations as well as unions that offer their very |
| This is a company or an individual that is involved | | | | own in house credit unions. |
| throughout the entire cycle of the loan. So right from | | | | Government loans |
| beginning till the end of the loan tenure when the loan is | | | | Many borrowers have the wrong impression that the |
| closed, the mortgage banker is involved. You may | | | | government actually makes new home mortgage |
| directly interact with the mortgage banker for all your | | | | loans. However that is a misconception. In most cases |
| transactions. The mortgage banker makes his money | | | | the government supports or backs up certain loan |
| from the new home mortgage via all the associated | | | | types. This support or backing by the government in |
| fees, closure costs as well as points earned during the | | | | turn helps lenders to be more likely to grant these |
| loan cycle. Once you close the loan, you could choose | | | | loans. It could be because they have the added |
| to continue maintaining the relationship with the | | | | assurance of support and intervention from the |
| mortgage banker or they might even sell off the loan | | | | government. You can easily approach your very own |
| to another person or entity. | | | | neighborhood local banker to find out the best deals |
| Mortgage broker | | | | that are backed by government authorities. |
| You maybe suffering from a poor credit score or you | | | | Direct lenders |
| may just not have ample time on your hands to shop | | | | You can also check with online mortgage companies |
| around for the new home mortgage. In such situations, | | | | that can assist you with finding a good quality direct |
| opting for a mortgage broker to help you out is the | | | | lender. They may even help you to find a reputed |
| best way. The mortgage broker is essentially a | | | | home loan broker of choice. They usually suggest |
| middleman of sorts who will intervene between the | | | | such lending institutions based on your individual |
| borrower as well as the mortgage banker. He or she | | | | requirements and financial goals. Comparing rates |
| has a thorough knowledge of the best deals around in | | | | online is a great way to arrive at an informed decision |
| the market or which lending companies are more likely | | | | and to assess schemes from various lenders. So if |
| to grant loans to sub prime borrowers or those with a | | | | you happen to shop around a little bit or just asked |
| bad credit history. | | | | around for the rates you could actually get a good |
| Credit unions | | | | mortgage deal. |