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Finding the best mortgage loan is about more than just securing the lowest interest rate. It’s also important to make sure you’re comfortable with the company that’s originating the loan.
Although many parts of the mortgage process are the same across all lenders, there are some differences that can affect the fees you are charged and the service you receive that are worth considering when you shop around.
Where Can You Get a Mortgage?
There are many companies that can help you get a mortgage loan. You could consider a local bank branch where you have a savings account, an online lender or a mortgage broker that works with many lenders.
Lenders that accept your application and lead you through the mortgage process up until closing are loan originators. Once you close on a mortgage, the loan might be sold from the loan originator to another company, which will then be in charge of collecting payments from you.
Conventional Banks
Mortgage loans are part of the portfolio of services at banks, which also offer checking and savings accounts, other types of loans and possibly investment services.
You can apply in person or online at a bank and will be assigned a loan officer. You might prefer this option if you already have accounts at the bank and want to get personal service from a community bank or local branch of a larger institution.
Credit Unions
There are more than 5,100 federally insured credit unions in the U.S., ranging from small lenders to multi-state operations. Like banks, they have a variety of financial offerings—including savings and checking accounts—and more than half of the loans they issue are mortgages.
To get a mortgage loan with a credit union, you need to be a member, which usually means you have to have a “common bond” with others. For example, you…
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