Which Type of Mortgage Lender Do You Use?
One of the least understood aspects of Charlotte home loans is the different types of lending that is available to buyers. Most buyers mistakenly assume they have to obtain a home loan from a traditional savings and loan.
There are several different types of lenders; here are the main types of mortgage lenders and how each of them function:
Mortgage Bankers: Mortgage bankers are loan originators that operate with the sole objective to sell the loan they create to another source. Even though they will sell the loan they must have the ability to finance the loan in the first place and hold it until it is sold.
Mortgage Brokers: This type of lender does not actually originate the loan for your Charlotte home, they prepare the paperwork to submit to multiple lending institutions and get offers, from which they will present to you to select. Their offers may come from any of the other types of mortgage lenders. Many people believe that this type of loan is costly because of the additional work the brokers have to do to ‘shop’ for the loan for you but, they can oftentimes find aggressive rates for you and the lender will sometimes even pay the brokers' fees, making the cost of the loan even less than that of other types of loans.
Banks and Savings & Loans: These are the most common traditional sources of mortgage loans. They use the backing of their depositors to fund mortgages. In turn, they use the money paid by borrowers to repay the depositors’ interest for allowing them to use the money as an investment.
Credit Unions: Credit Unions operate in largely the same way a bank or savings and loan does by using money from a pool of depositors to finance investments in the form of mortgages and other types of loans. The difference is that most credit unions are operated out of a collective pool of closely associated people generally through a work place or professional organization.
If you’d like help determining the best type of mortgage lender for your Charlotte home purchase, give me a call or email me today.
(THE best Charlotte home search available - no kidding!)
Debe Maxwell, CRS/Realtor®/Broker
Broker@TheCharlotteScoop.com
Phone (704) 491-3310
