What are Mortgage Banks, Mortgage Brokers, and Mortgage Companies?

The first step in getting a home loan is to find a mortgage company, mortgage bank, or mortgage broker who will lend you money.

Most banks offer savings and checking accounts, and different kinds of loans, including home mortgages. If you belong to a bank, then try to apply with them, it may make things easier for you to get a mortgage directly from them.

Mortgage companies are specialists. They don't offer any other kind of financial services. They only do home loans. This makes their operations more streamlined than banks.

Mortgage brokers are companies that have access to many different lenders and rates and they can go through many options to find a home loan that's right for you. Mortgage brokers are sometimes small companies or just individuals. They may not be as streamlined like a mortgage company.

The most important thing to you is your interest rate. It will determine how much your monthly payment will be. But, don't choose a lender just because of the interest rate. Most mortgage lenders carry the same range of mortgage types and rates. Choose a lender who is reliable and has a record of good customer service. Ask your friends and family who they recommend. If you have bad credit and one lender turns you down, then check around and try again with another lender. Every mortgage lender has different guidelines for lending. If one lender thinks you are too risky, another lender may be comfortable with you.

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