Carmen Queral, PAC, MBA - Beverly Hills Realtor
REALTORĀ®
"Everything is Possible in Real Estate"
(818) 321-5056

There are different types of lending available to those looking for a new mortgage. The information below should be helpful in deciding where to go for a mortgage and what is best-suited for your particular need:

Lending Types:

                           Commercial Banks:

-More widely trusted by many borrowers because of their stability.

-Tend to have higher rates than some other mortgage lenders.

-May not have the widest selection of products.

-Fast turnarounds and consistent underwriting practices.


                   Savings Associations/ Federal Savings Banks/ Thrifts:

-Focused on mortgage lending and offer a wide variety of loan products.

-May have more flexible underwriting standards.

-Depending on whether they sell loans on the secondary market or keep them as portfolio loans, credit availability may vary.
               
                           Credit Unions:

-Only available to members of the credit union.

-Underwriting standards can be fairly rigid.

-Products are limited to the basics.

-Rates are usually very competitive since credit unions pass their profits back to their members.


Mortgage Bankers and
Brokers:

 

-Aggressive in underwriting and rates.

-Loan officers work on commission, so they tend to work harder for their clients.

-Borrowers tend not to trust these lenders as much, because they do not have big, household names.

-Underwriting standards are set by the secondary market, so they may be less flexible in taking mitigating circumstances into consideration.

-Brokers will have the widest selection of products since they can place products with a variety of lenders.

-Borrowers must take into consideration additional brokerage fees.

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