Finding a Lender

Where do I actually find a lender?
Lenders can generally be found in the same place as information on mortgages. These include:

Newspapers
Generally the local papers have Mortgage Watch columns in the real estate section. These will give you the names of a number of local mortgage companies plus the loan types and rates they are offering. You can then call up the different mortgage companies and compare loan types and rates.

Local Lenders
Visit local lenders such as banks, savings and loan companies or credit unions. Your workplace may have a credit union. Credit unions generally have low rates for members and will have a lot of information on mortgages.

Real Estate Agents and Brokers
Real Estate agents and brokers will generally have lots of information on mortgages, local lenders and their rates. The firm may even own a mortgage company which is not at all unusual. Your agent or broker should provide you with information on lenders including their own. Since 1974, it has been illegal for a real estate broker to receive a kickback or finders fee from referrals so you do not need to worry the agent receiving a fee from referring clients to lenders.

Federal Government
The government provides information on mortgages to the public free of charge. However, the information is limited. For a free brochure write to:
Consumer publications
Pueblo, Colorado 81003

Local Housing Authority
A local housing authority provides free information to the public on housing and mortgages. There may also be program information for first time buyers. Programs may include help with down payment plus lower than current interest rate loans. You will have to meet certain income or location requirements to be eligible.

On Line Sources
Both Fannie May and Freddie Mac who trade on the stock exchange have excellent websites filled with information on mortgages. Bank Rate Monitors website www.bankrate.com is devoted to providing the latest information on mortgage interest rates. Homeowners.com has won several awards form for site content and is also an excellent source of information. In fact, you can even apply for a mortgage on line. www.homeowners.com and www.homeadvisors.com are two of the most popular. Many of the search engines and websites have their own guides to mortgages such as National Mortgage "Finance and Mortgage 101" guide.

Mortgage Search Company
You could enlist the services of a mortgage search company that uses a computerized network to find the best loans and thus lenders in your area.

Depending on the current market you may be inundated with calls from lenders or have to seek them out. In a down market, when there is not a lot of money floating about, the lender will most likely have many clients looking to borrow money and will most likely not be seeking out more. On the other hand, in an up market, there will be more money around thus the lender will probably be seeking clients to borrow this money. Remember, it is ultimately your decision on which lender you choose to use so do your research. You can even call up lenders and interview them. You need to feel entirely comfortable with your lender and the loan officer as these are the persons you will most likely be dealing with. Investigate whether the company has been in business for long. It can be reassuring to work with an established company that has a good track record.