The Advantages of Different Types of Mortgage Lenders

• Introduction
• When Realtors or Builders Recommend a Lender
• Wholesale Lenders
• Mortgage Bankers
• Mortgage Brokers
• Portfolio Lenders
• Banks and Savings & Loans
• Conclusion

INTRODUCTION:

What kind of lender is "best?" 

If you ask a loan officer, "What kind of lender is best?" it is going to be whatever kind of company he works for and he will give you a list of reasons why.  If you meet the same loan officer years later, and he works for a different kind of lender, he will give you a list of reasons why that type of lender is better.

Realtors will also have differing opinions, and their opinions have changed over time.  In the past, it seemed like most would often recommend portfolio lenders.  Now they usually recommend mortgage bankers and mortgage brokers.  Most often they direct you to a specific loan officer who has demonstrated a track record of service and reliability.

This article discusses the advantages and disadvantage of different types of institutions, not the individual loan officers.   However, it is often more important to choose the correct loan officer, not the institution.  The loan officer has many responsibilities, one of which is to act as your representative and advocate to the lender he works for or the institutions he brokers loans to.  You want someone who has proven dependable and ethical in the past.

Regarding the institutions, the truth of the matter is that each type of lender has strengths and weaknesses.  This does not even take into account the variety of other factors that influence whether a lender is "good" or "bad."   Quality can vary, depending on the loan officer, the support staff, which branch or office you are obtaining your loan from, and a variety of other factors.