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When you are looking a buying a property, maybe for the first time or even simply moving house, then you will need to purchase a mortgage/re-mortgage. The actual person who will be approving your loan will be a Mortgage lender. This lender could be a bank or simply any other financial institution who offer mortgages or loans.
There are many options for mortgage lenders, or those who loan the money to the buyer to purchase the property. Mortgage lenders may be thrift institutions, commercial banks, mortgage companies, credit unions, and even personal entities. Depending on the type of lender, type of loan, and personal financial situation, the current market, and city the property is being purchased in; quotes can greatly differ on a case by case basis.
Sometimes a lender will sell the loan to the open market, but still continue to service it. The cost of using a lender is usually less than that of a mortgage broker. The mortgage broker, however, might find you a better rate because they are not bound by the policies of one institution. It is, therefore, debatable that going directly to the mortgage lender for a loan will save you money. You should consider looking around and comparing rates before signing any agreements. All mortgage brokers and mortgage lenders should tell you their costs upfront. It is also a good idea, in some instances, to use a lender referred to you by your realtor. Realtors work with lenders all the time and yours might know a mortgage lender who is reliable and honest. In the end, though, you should use the mortgage broker or mortgage lender that is right for you.
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