Choosing the Right Mortgage Lender

If you are looking for a mortgage loan, you will be able to find one easily enough, but there are a few things you should know about mortgage lending. At one time, homeowners could only take mortgage loans through banks and credit unions. But that has changed now and there are more home-financing providers. Direct lenders, mortgage brokers, home builders, and real estate agencies are some of them.

Direct lenders

Direct lenders review your loan application prior to deciding whether to lend you money. Banks and financial institutions are common examples of direct lenders. Here are some of the benefits of a direct lender.

Reliability: You know the organization and trust it; the lender is regulated by the federal and state government.

Speed: Direct lenders process loans faster.

Savings: Since the institution is the loan originator, it will save you money.

Single window: You have to deal with just one institution.

The flip side is that you don’t get many options with a direct lender.

Mortgage Brokers

In Salt Lake City, another popular financing option is a mortgage broker, who is a middleman representing several lenders. The goal is to match you with the loan that makes the best sense for you at the lowest price possible. You will deal directly with the institution once your loan gets approved.

Here are some of the benefits.

Variety: Mortgage lenders get you better deals by offering a range of different products from different lenders.

Qualifying: A mortgage lender can lead you to the lender who is most likely to sanction your loan based on your personal and financial information.

Speed: Mortgage lenders can save you time by taking you to the right lender right at the outset.

Savings: You will have more savings by getting a favorable rate for your loan.

The downside of working with a mortgage broker is that there may be hidden costs written into the loan.

Weigh your options well and do your research before deciding on a mortgage lender. Your choice will affect not only your finances but your home as well.