You can look through the many ads in your local newspaper. And with the arrival of the Internet, thousands of mortgage lenders are available to you with the click of a mouse. Depending on your situation, it may be prudent to shop among a variety of types of lenders. The average mortgage consumer usually contacts between 4 and 6 lending institutions. The following is a brief explanation of the different types.
Mortgage brokers tend to be low cost, local sources of home financing.
Most mortgage brokers work with a variety of lending sources so they can offer competitive rates along with a myriad of programs. This is useful if you have a situation that does not fit within the usual guidelines. Banks may be local, regional or national. A bank will usually offer a limited array of mortgage programs and if you do not qualify for these, you may not have additional options. Your main goals in the shopping process should be to find a mortgage lender with a friendly, knowledgeable staff, competitive interest rates and fees, and verifiable references.