Understanding Lenders

One of the most important elements of the home buying process is securing a loan for a mortgage – after all, very few of us have the cash required to buy a house outright. Here are some of the basics ​​​​​​​you should know about mortgage lenders.

What is a lender? In the simplest of terms, a mortgage lender is a person or company that loans buyers money to purchase a home.

What kinds of lenders are there? There are several different types of mortgage lenders from which to choose. The most common of these is called a mortgage banker. Banks and online agencies such as Quicken Loans or Rocket Mortgage are mortgage bankers. Credit Unions are mortgage bankers as well, ​​​​​​​but only buyers who are members of that credit union qualify for a loan. Direct lenders provide loans from their own funds (or from funds that they procure from someone else).

Is a mortgage lender the same as a mortgage broker? No. Mortgage brokers are a third party working with you to obtain a loan from lenders; they are essentially paid intermediaries who help you determine which loan is best for your circumstances.

Which mortgage is right for me? It depends entirely on your situation. An experienced real estate agent will likely have specific lenders in mind based on your particular requirements.

Feel free to reach out with any questions. I’m here to assist you every step of the way!