Who’s who

However persuasive the representative, never apply for a mortgage before you have spent ample time comparison-shopping. Compare home mortgage rates and ask questions of several lenders before you make a commitment. You can maximize your shopping time if you know a little bit about the different kinds of lenders.

Currently, there is an overwhelming assortment of home mortgage rates available. Some borrowers find that they are paralyzed by this choice. A competent lender should be able to guide you through this process. A familiarity with the primary types of lending establishments will simplify the task of selecting a competent lender.

The major point to understand is the distinction between a mortgage broker and a mortgage lender. Mortgage brokers do not finance your mortgage directly; instead, they represent the companies that do. For that reason, they generally offer competitive products that might help you get the most favorable home mortgage rate.

On the other hand, mortgage lenders directly finance your loan without a middleman. Because their products are all in-house, they have less to offer. Less choice might mean getting a less favorable home mortgage rate, but there is no denying that it surely can also greatly simplify the mortgage shopping process.

In the final analysis, the type of lender you choose depends upon your priorities and preferences. If you do not have a clean credit history, your available pool of lenders might be rather limited. Either way, it is best to look for a company who services many customers who share a similar financial profile with you. That way, you know they will most likely be able to service you well and meet the majority of your mortgage needs.