Only you know which credit institution is the right one for you

There are three types of mortgage companies (retail banks, credit unions, and mortgage banks), as well as mortgage brokers, who compare credit products offered by different companies to help you find the best loan. Before you start recruiting candidates, you need to know what you want and where to find it. Let's see your options.

Retail banks

What they are: They are banks, such as Chase and Bank of America, and other local banks. They look into your finances themselves, so especially the smaller ones, they can sometimes offer lower rates and less stringent credit requirements. If you want to have all your accounts in one place, you can use your own bank or credit union.

Who you will deal with: You will be assigned a loan officer, who will receive a commission or bonus for making your loan.

Credit unions

What they are: They are non-profit organizations, owned by customers, so they are not beholden to shareholders, like a bank. Because of that and being non-profit, they generally offer a more personal service and lower fees. The other side is less convenient: they have fewer branches and ATMs.

To apply for a loan, you must be a member of the credit union, which is based on faith, profession, certain interests or union membership. It's usually not difficult to become a member; The National Credit Union Administration Locator (https://www.mycreditunion.gov) is a tool for finding a credit union near you.

Who you will deal with: Just like with a bank, you will be assigned a loan officer who will receive a
commission or bonus for granting it.

Mortgage banks

What they are: These banks, like AimLoan and PennyMac, only offer home loans. Many
Online lenders, like Quicken Loans' Rocket Mortgage, operate like mortgage banks.

Who you will deal with: A mortgage bank will assign you a loan officer, who will receive a commission or bonus calculated on the gross fee charged by the credit institution for granting the loan. A credit institution that operates online will not give you such personalized treatment.

Mortgage brokers

What they are: Mortgage brokers are essentially mortgage loan promoters; They act as liaisons between buyers and mortgage companies to help people find the lowest rates and best mortgage terms. They can get buyers to get better mortgage rates through their existing relationships with lenders, something individual homebuyers can't do. By doing the heavy lifting for the borrower, the idea is to make loan selection quick and easy.

Who you'll deal with: A mortgage broker can be an individual agent or a group of agents, acting as independent contractors. In exchange for their services, mortgage brokers typically charge a fee of 1% to 2% of the loan amount, which is paid by the borrower or lender at closing.

Estee Soto

Estee Soto is a real estate agent with eXp Realty, a certified mentor and eXp Latino ambassador, and the CEO and founder of TagCrush LLC, an all-in-one digital marketing platform for real estate agents. She leads the TAGHOMES team, specializing in luxury properties, new developments, and international buyers across Florida.

More information about Estee Soto HERE