About Mortgage LendersWhen we go ahead with the home buying process it is confusing and a little intimidating to shop for a lender.choosing from so many companies and types of lenders could be difficult.

A borrower would need to shop at a few lenders to get the best loan offer.Many mortgage brokers and mortgage lenders charge a fee of 1% of the loan amount.

However, mortgage lenders charge higher interest rates which are negotiated by some brokers for an up-front fee to the borrower in exchange for their services.Before going ahead with a prospective broker they need to be asked how much they charge and who pays for the fees.How do the brokers help?A borrower saves time and effort because the mortgage brokers can help by shopping multiple mortgage lenders for the borrower.If the borrower needs a loan with a low down payment requirement or if his credit is not so great then the brokers can look for lenders that offer products tailored for such situations.

Brokers typically have well-established relationships with lots of lenders.Their connections can help the borrower to score competitive interest rates and terms.

With their focus only on home loans, direct lenders have more flexible qualifying guidelines and alternatives for borrowers who have complex loan files.Just like retail lenders, the direct lenders, offer only their own products so one needs to apply to multiple direct lenders for comparison shop.The only potential drawback if you prefer face-to-face interactions is that many direct lenders operate online or have limited branch locations.Portfolio lendersBorrowers’ are funded for their loans with their own money by a portfolio lender.

Shortly after closing the wholesale lenders usually sell their loans on the secondary market.Correspondent lendersWhen a borrower’s mortgage is issued the correspondent lenders come into the picture.