Type

Advantages

Disadvantages

Banks

•·         Regulated by state and federal agencies

•·         Current banking relationship can get you a reduced mortgage rate

•·         Numerous branches provide you with face-to-face access

•·         Limited to products only the bank has to offer

•·         May not have the best rates

•·         May lack negotiation leverage when it comes to publicized rates

Mortgage Brokers

•·         Access to a variety of mortgages and lenders

•·         Can save you money by shopping for the best rates

•·         Can quickly find another lender if your loan initial application is turned down

•·         Some function as the lender's agent and have the lenders best interest at heart

•·         Free to set their own pricing and may mark-up wholesale rates to whatever they want

•·         Service may vary from broker to broker

Home Builders

•·         Good way for the first-time home buyer to qualify

•·         The buyer does not take title to the property until the home is completed

•·         May favor certain lenders who offer higher rates

•·         Can pressure you into getting their loan instead of using a different lender

Internet Lenders

•·         Allows you to shop for competitive rates online

•·         A greater learning curve for the borrower to understand the lending process