When seeking mortgage financing, borrowers today have many different options to obtain the best mortgage program based on their current situation. Previously, borrowers were limited to certain banks within their geographical area. With brokers and correspondent lenders emerging as well as internet based banks, the opportunity to find a better program/rate/reduced fee structure is out there.

While going to your local bank may still be an option for you, it’s advised to do some research to see what a broker can do for you. Sometimes a broker or correspondent lender has relationships with financial institutions where they can obtain a lower rate based on the business volume they do with that particular bank.

Private mortgage lenders often have higher fees, will offer much higher rates and will usually require a greater amount of equity or collateral before processing a mortgage application.

One must always take into consideration upfront fees and yield spread premiums. (Up-selling the interest rate to reduce out of pocket expenses) As mortgage brokers generally have access to a broader variety of mortgage products, their fee structure may be higher as they are negotiating with a financial institution to get you a loan. Always remember that they are working with the banks on a daily basis and obtaining a loan can be difficult sometimes and fee structures will vary.

If you are having difficulty obtaining a mortgage loan, consider the following types of mortagage lenders:

Correspondent Lenders

Mortgage Banks

Mortgage Brokers

The internet can be a great tool when performing research on correspondent lenders, mortgage banks, or mortgage brokers in the USA. Remember that the lender you decide to go with needs to be licensed in the state in which you reside. Doing business over the phone or through e-mail is perfectly fine, but remember that you have to physically sign documents at the closing, so it’s advised to figure out where the location of the closing will be so it’s not an inconvenience driving hundreds of miles away.