Retirement & Financial Planning Report

Home buyers can seek financing from either of two sources:

  • Mortgage brokers. These firms will go to many different potential lenders, which might provide you with a home loan.

  • Mortgage lenders. Alternatively, you can go directly to a bank, S&L, or credit union that will make you a loan, if you qualify.

A broker may be more willing to work on getting you the best terms for your loan. A broker also might be more accessible, after hours, than traditional lenders.

Lenders, on the other hand, may have more resources. You can work with a loan officer who’ll bring in specialists, when appropriate.

Today, most mortgages are arranged through brokers, who may be able to help you negotiate an increasingly complex mortgage market. However, you shouldn’t ignore the possibility of working directly with a lender, who likely will have more control over the entire process. A bank’s loan officer may be better able to deal with any problems as they come up.