HOW TO FIND THE BEST MORTGAGE RATE NEAR ME? Are you constantly faced with the question, "how do I find a mortgage broker near me?" Your search ends right here with our comprehensive guide. What do you consider when sifting through the numerous "mortgage lenders near me" who appear on your Google search?. We have simplified the process by outlining what you need to consider to get the best mortgage rate.
Types of Mortgage Lenders An important yet highly ignored part of getting the best mortgage rate is understanding all the different mortgage lenders in the market. Most borrowers mistake skipping right to the application process without considering the type of lender they are dealing with or their rates. To enjoy the best deal, it is essential to understand the different types of lenders. Then, identify a lender you would like to work with. The lenders can be; Wholesale Lenders These are banks and other big financial institutions which don't offer mortgage loans directly to borrowers. Instead, they deal with third parties like credit unions, mortgage brokers, or other banks. Wholesale lenders are often large banks like Wells Fargo or Bank of America. The wholesale lender will offer the loan, and the lender's name will appear on the loan documents. The third party the wholesale lender works with will be simply serving as an agent at a fee. Portfolio Lenders These are mortgage lenders who use their finances to make home loans, hence the name portfolio. Therefore, they maintain their books and don't need to meet the demand of other investors. Thus, they set their loan terms. Portfolio lenders are ideal if you are a niche borrower who doesn't fit the typical borrower profile. Despite having low rates, portfolio lenders are extremely cautious about whom they lend to. Direct Lenders Common types of mortgage lenders are direct lenders, who lend money to borrowers from their loans. It can be loans from personal or borrowed funds.