Not All Mortgage Lenders Will Offer You the Same Deal on Your Detroit Home Loan

By Gabriel Traverso
Local Lender Columnist
Sep 7, 2007
Applying for a new home loan? Did you know that there are different kinds of mortgage lenders? Do you know which one would be right for you?

Not All Mortgage Lenders can Offer You the Same Deal

There are three kinds of mortgage lenders to consider when shopping for your Detroit home loan. Understanding these differences can help you find the best deal on your new home.

Banks and Credit Unions

Have you been banking with the same Detroit institution for years? It might be a good idea to start with your bank when shopping for a new home loan. As long as you meet their credit requirements most banks will reward customer loyalty if you stick with them for your new mortgage. However, check other lenders' rates to make sure you're getting a deal.

Mortgage Bankers

These are banking institutions that specialize in mortgage lending, and because home loans are their sole focus they are often very competitive. This could be a good place to start shopping for your Detroit home loan. They fund their loan programs by taking out large lines of credit with major investors and, while many mortgage bankers sell the mortgage after funding, others continue to service the home loan.

Mortgage Loan Brokers

Loan brokers make up a good portion of the mortgage business. These companies don't underwrite the loans themselves, but work with a variety of wholesale lenders who underwrite and fund the loans. They are often highly competitive and because they work with so many lenders this can be a great place to start for borrowers with special circumstances, such as the self-employed or credit-challenged.

When shopping for your home loan, check with at least three lenders in the Detroit area. Understanding the differences in mortgage lenders can help you with this process, especially if you have special needs. If you're not sure whether you're dealing with a mortgage banker or a broker--just ask!

About the Author
Gabriel Traverso is a freelance writer, professional musician, and an artist. He resides with his family in Reno, NV.