Which Mortgage Lender is Right for You?

There are different types of mortgage lenders (mortgage bankers, brokers and wholesale lenders), and knowing what each one does will help you determine which one is more suited for your needs.Here is a breakdown of what each one does:

·Mortgage Banker

Mortgage bankers tend to be larger scale, generating their own loans which they sell directly to the primary federal financing institutions (FNMA, FHLMC, and GNMA) or other big loan institutions. They may or may not service these loans depending on which mortgage banker you go to.

·Mortgage Brokers

Brokers are similar to bankers except they receive loans from wholesale lenders by establishing relationships with them and getting loans below retail value.Many times, brokers will use lending institutions that have a wholesale loan department rather than an entire wholesale company.

·Wholesale Lenders

Wholesale lenders provide brokers with loans below retail cost so brokers can add on their fee for their clients. By doing this, clients receive loans around the same amount from their broker as opposed to going directly to the retail branch of a wholesale lender.Some wholesale lenders don't even have retail branches and therefore only give brokers loan assistance.

Learning the differences between lenders will help you better decide which one can assist you best.