Overview

As a buyer, you should shop around for the best mortgage that fits your needs and you have various choices.  Each of the options for lenders have their pluses and minuses and it is in your best interest to explore each of them to determine what fest fits your needs.  This is your choice at the end of the day and using someone who you find trustworthy and reputable is key.

Our advisors can provide a list to get started with if you don’t already have some lenders in mind.

Banks and Credit Unions

These are the major institutions that you do business with on a daily basis.  If you have a good long-standing history with them, they may be your best bet in terms of financing, including loan origination costs and interest rate.  The downside with these institutions, however, is you may not receive the level of service compared to the other options as you may be going through a processing facility that is far away and people who may not fully be familiar with your market.

Mortgage bankers

These lenders use their own money to fund your loan, but ultimately sell the loans to other entities whether commercial banks, Fannie Mae, or Freddie, Mac, etc. They will often service your loan after being sold and receive a small percentage in return.  Finding a local mortgage banker who knows your market can be beneficial as they know what it takes to get a deal done factoring in any nuances that come with a home of interest.

Mortgage brokers

Mortgage brokers do not lend their own money, however, they arrange financing through mortgage bankers, commercial banks, private investors, or institutions and receive a commission in return.  They will shop for the best rate and closing costs for you, however, it comes with a cost in return that you should understand.