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The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: Tetra Images/Getty Images April 07, 2021 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Sarah Sharkey is a contributing writer for Bankrate. Sarah writes about a range of subjects, including banking, savings tips, homebuying, homeownership and personal finance. Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. John Stearns, CMC, CRMS is a Senior Mortgage Loan Originator with American Fidelity Mortgage. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our mortgage reporters and editors focus on the points consumers care about most — the latest rates, the best lenders, navigating the homebuying process, refinancing your mortgage and more — so you can feel confident when you make decisions as a homebuyer and a homeowner. Bankrate logo Editorial integrity
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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. When searching for the right home, you’ll likely have a list of must-haves or nice-to-haves. When shopping for the right , your preferences play a role, too. Although lenders can provide the same end product, not all are created equally. Depending on your needs, you could work with either a large lender, a local lender or another type altogether. Where can you get a mortgage
First thing’s first: Let’s talk about where you can get a mortgage. The different types of mortgage lenders include: – One of the most common places to get a mortgage is through large lenders in the banking space. These are well-known brands and typically available nationwide — think or . Local banks – Many community and regional banks also offer mortgages, but these can sometimes be confined to a specific service area. Affiliated mortgage companies – Some mortgage companies are affiliated with a bank but go by another name. PrimeLending, for example, is a mortgage lender subsidiary of PlainsCapital Bank. – In some cases, credit unions can offer fewer fees and lower rates than big banks. Independent mortgage companies – An independent mortgage company is one that isn’t affiliated with a bank. One example is Fairway Independent Mortgage Corporation. – Online mortgage lenders don’t have extensive overhead costs, which often translates to more affordably-priced loans. One example of an online lender is . Big banks and national lenders Pros and cons
Big banks and national mortgage lenders can come with some sense of security, especially if you’ve heard the name or see branches everywhere. If you need help determining which kind of mortgage to get, for instance, the convenience of heading to a branch to speak with someone in-person can be valuable. Additionally, large banks tend to have extensive customer service hours. If you’re facing a pressing issue concerning your loan after banking hours, chances are you can get a hold of someone over the phone or via online chat. Big banks and national lenders often offer a streamlined online application experience, as well, and once approved, you’ll likely be able to manage your loan payments entirely online. Going bigger isn’t always better, though. Although big banks are convenient and familiar, you’re likely to find yourself among thousands of other borrowers. With that, you might not find as personalized an experience as you’d like, or an overt willingness to help you through the process. Going local Pros and cons
On the flip side, a local mortgage lender can lend a more personalized approach, as most loan officers at local lenders live in the community where they work. Your loan officer might have fewer clients to keep up with, too. If you have a more complicated loan, this can play in your favor, as you’ll have easier access when questions pop up. A potential downside of working with a local lender, however, is that you might have to spend some time sorting through and vetting your options compared to simply going with your existing bank. What about credit unions
are another option when taking out a mortgage. A credit union is a nonprofit financial institution controlled by its members, and typically offers lower . However, at a credit union, you might only have to access to a limited line of loan products, meaning you might not find exactly what you’re looking for. Plus, you’ll need to qualify for membership. That member-focused experience, though, could lead to more case-by-case flexibility that can help you with your mortgage needs. Are online lenders better
An online mortgage lender allows you to move through the loan application process quickly, usually with an entirely (or almost entirely) digital experience. This can be especially valuable today, when in-person contact is being minimized. They’re also worth considering if you want to take advantage of lower rates. Convenience, cost and speed matter, but you might also need human interaction at some point in the process. With no branch locations, this can be difficult to come by with an online lender. How to find the best mortgage lender
When searching for the — either a big bank, local lender or another type — cost is important, but so are your needs and preferences. Here are some ways to : Consider your credit. If your credit score could use improving, look into lenders who have . They’ll typically have more experience qualifying those who don’t fit the standard borrower profile. Compare quotes from multiple lenders. Studies show that could save you thousands. Don’t skip this step! Look at how lenders communicate with you. As you seek out preapprovals from different lenders, pay attention to how they communicate with you. The right lender shouldn’t be difficult to work with, and should be able to answer your questions promptly and keep you updated throughout the process. The right lender won’t ever pressure you with a hard pitch, either. Weigh out the lender fees. Many lenders charge an origination fee, and some charge an application fee, as well. Take this into account when comparing your options. Be sure to watch for fees that seem high — this can be a sign that you’re not getting the best deal out there. Learn more
SHARE: Sarah Sharkey is a contributing writer for Bankrate. Sarah writes about a range of subjects, including banking, savings tips, homebuying, homeownership and personal finance. Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. John Stearns, CMC, CRMS is a Senior Mortgage Loan Originator with American Fidelity Mortgage. Related Articles