TYPES OF MORTGAGE LENDERS

In the mortgage industry there two types of lenders, Direct Lenders and Mortgage Brokers:

Direct lenders: Direct lenders include banks, credit unions, and mortgage lenders. Direct lenders normally lend their own money and few offer sub-prime mortgages. If you can find a direct lender that offers sub-prime mortgages you will be in far better shape, as you will normally pay lower fees and have a better rate due to lower costs and fewer companies handling your loan.

Mortgage Brokers: These are mortgage companies that are connected to both prime lenders (for good credit clients) and sub-prime lenders for outside-the-box and credit-challenged mortgages.  Mortgage Brokers have historically gotten negative press for unethical practices such as over charging or charging bogus fees (see out article on mortgage lender fees & closing costs ). 

No matter what type of lender you go with, you need to be an educated consumer and we have all of the information you need within our site.

APPLY NOW with our online mortgage application