Different types of mortgage lenders

Unless you’re paying cash, getting a mortgage is essential for buying a property. Depending on your situation, you can choose between different types of lenders. Here are some of them.

• Banks. Large and small banks offer mortgage services. The larger ones may have strict qualification requirements for obtaining a loan.

• Private lenders. These are individuals or companies who set their own terms and rates. They’re not subject to regulation. Private lenders are more flexible and are a good option if you have poor credit.

• Monoline lenders. These lenders offer only lending services, hence their name. They may be publicly traded or unlisted mortgage investment companies. Their criteria are similar to those of banks.

• Credit unions. These non-profit organizations are subject to various rules. Credit unions put people before profits and always give back to their members or reinvest in local communities.

Whichever type of lender you choose, make sure you select the one that offers the best rate and most advantageous terms.

Need help finding a lender?
Mortgage brokers are certified specialists who will shop around and help you get a loan that best suits your situation. Ask about their services.