Examples of Mortgage Lenders
If you are planning to purchase a new house for yourself or a new car for you and your family or even start your own business, then you’ll need to get a loan. But in order to get a loan, first you’ll be required to go through a process of getting a mortgage.
You can get a mortgage from a bank, credit union or a mortgage broker company that specializes in that particular area.
- Banks – Bank that offer mortgages are privately owned, profit seeking institutions. They in many cases charge a higher interest rate than other lenders. Large banks have good services and can handle the mortgage process quite fast.
Credit Unions – A credit union is a non-profit, member owned institution whose main purpose is to benefit its members. Credit unions have better interest rates, which means that their mortgage loan interest rates are lower.
- Mortgage Broker – A mortgage brokers are like stockbrokers. They act as a third party between a borrower and a lender. They usually deal with many mortgage lenders and can offer a wide choice for you. However, they can also have a deal with a company, whose rated not the best in the industry. Mortgage brokers take a commission fee from the arrangement.
All these mortgage lenders have their own advantages and disadvantages. Some of them have higher interest rates, while others can be risky and take very high commission fees.
There are however, certain tips you can use not to get in trouble and save yourself from a shady mortgage lender.
posted by mortgageguy at 2:38 AM
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