Choosing the Right Home Lender
Before applying for a home loan, you will need to go through a home mortgage lender. There are a number of different types of home mortgage lenders, some who deal directly with prospective home buyers and others who merely put up money. The list below will help you compare the types of home mortgage lenders available for first home buyers.
Mortgage brokers are professionals who bring together lenders and borrowers. A Mortgage Broker will help you find the right home loan for your needs by researching a range of loans available from multiple lenders even hundreds of lenders (usually banks) very quickly. Because Mortgage Brokers are up to date with all the current home loans available, they act as the go to person for you for mortgage information and will help you through the application and settlement process.
They generally charge the borrower nothing for their service, as brokers are paid a commission by the lender when the mortgage is settled.
Mortgage Managers vs Mortgage Broker
A Mortgage Broker doesn’t actually lend you money. Their role is to facilitate a loan – helping you choose from a range of Lenders.
A Mortgage Manager or Non Bank Lender, on the other hand, does lend money. Non Bank Lenders go into the financial markets, obtain funds, and then offer those funds to borrowers at particular terms.
Banks, Credit Unions and Other Lending Institutions
The loan officer at a bank, credit union or other lending intuitions is an employee who work to sell and process mortgages and other loans provided by the employer. They often have a wide variety of loan types to choose from, but all loans originate from one lending institution.
The loan officer will take your application and works to find a home loan that suits your needs. If your personal credit is approved they will also help process the purchase.
4. Applying for a Home Loan