All investments require preliminary research. When it comes to buying a home, that includes learning about different types of lenders before you apply for a
mortgage.
Since virtually all financial services companies, including
brokerage firms,
have entered the mortgage market, you have a wide variety of potential lenders to choose from:
Banks
and
credit
unions.
You may get a better rate if
you already have an account with the bank or credit
union you’re applying to.
Developers.
Most make arrangements with lenders to get you financing
if you’re interested in their properties.
Mortgage
bankers. They may offer lower rates or make qualifying
easier than banks do, since mortgage lending is their
primary business.
Mortgage
brokers. For a fee, they'll help you find the best
deal or get a mortgage if you're having difficulty.
Government-sponsored loans
Some U.S. government agencies and offices
insure or guarantee mortgages, making it easier for you to borrow
if you qualify for one of the sponsored programs.
Qualifying veterans may be able to borrow
up to $417,000, and sometimes more, with little or no down payment,
by taking advantage of Veterans Affairs (VA) mortgages
through approved lenders.
The
Federal
Housing Administration (FHA)
insures mortgages that help
many first-time homebuyers and minority homebuyers. And, the Rural
Housing Services (RHS) makes financing available to buyers in
rural communities. To get an FHA or RHS mortgage, you borrow through
an approved lender. Generally, the property you purchase using
these loans must meet certain guidelines. For example, sometimes
the price plus closing costs must fall below a certain limit.
The U.S. Department of Housing and Urban
Development (HUD) can help you locate other mortgage sources in
your community. You can begin your research by looking at their
Web site (www.hud.gov).
Dwight
P. Robinson, Senior Vice President, Corporate Relations,
Freddie Mac
Dwight
P. Robinson, Senior Vice President, Corporate Relations, 
