California Home Loan Shopping: Comparing Mortgage Companies and Rates
Gil MackeyLoanBiz Columnist
Mortgage companies differ widely in how they are
structured and how they conduct business. Understanding how lenders operate can
help you when shopping for your
Mortgage Companies
Mortgage companies can
essentially be broken down into two categories: mortgage bankers and mortgage
brokers. Mortgage bankers can further be divided into banks and credit unions.
These two offer similar mortgage services, similar mortgage rates, and both produce
loans using their own funds.
Banks operate on a
for-profit basis and may either service the loans themselves or sell them to
other lenders. Banks often offer a limited line of products, but can feature
low mortgage rates when they need to boost business for a short time period.
Credit unions are
not-for-profit--they take the earnings on home loans and usually give it back
to their members in the form of lower mortgage rates. Credit unions are very
cognizant that they are lending out their members' money and as a result may
underwrite more conservatively than banks.
Mortgage Brokers
Mortgage brokers are
specialty businesses that do not make home loans at all. Instead, they serve as
intermediaries working with a variety of wholesale lenders to help you find the
specific loan product you need, such as a
California Home Loan Shopping
It's important to check with a few mortgage companies and
compare mortgage rates before you make your decision. Helping understand the
differences between several mortgage companies can help you pick the best starting
point. Bottom line: compare loans, compare mortgage rates, and take the time to
get the best deal on your home loan that you can.
About the Author
Gil Mackey has been a writer and artist for the past twenty years. In addition to freelance writing, he writes for his local paper, and lives with his two children in Nevada.
