Who should you use to finance your Real Estate Purchase?

Here is a breakdown of the different types of lenders you may encounter when seeking a mortgage:

1. Mortgage Brokers: A mortgage broker is a professional who acts as an intermediary between borrowers and lenders. They work with a variety of lenders to help borrowers find the best mortgage rates and terms for their financial situation. Mortgage brokers may charge a fee for their services, which is typically paid by the borrower.

2. Banks: Banks are traditional lenders that offer a variety of loan products, including mortgages. They use their own funds to finance mortgages and may offer competitive rates and terms to borrowers with good credit. Banks typically have strict lending requirements, including a minimum credit score, income verification, and debt-to-income ratio.

3. Credit Unions: Credit unions are member-owned financial institutions that offer a variety of financial products, including mortgages. They are typically more community-oriented than banks and may offer more personalized service. Credit unions may have more flexible lending requirements and may be more willing to work with borrowers who have less-than-perfect credit.

4. Hard Money Lenders: Hard money lenders are private individuals or companies that offer short-term loans secured by real estate. They typically charge higher interest rates and fees than traditional lenders and may be more willing to lend to borrowers with poor credit or who do not meet the strict lending requirements of banks and other traditional lenders. Hard money loans are typically used for real estate investments, fix-and-flip projects, and other short-term financing needs.

5. Online Lenders: Online lenders are a relatively new addition to the mortgage lending landscape. They offer a variety of loan products, including mortgages, and may offer competitive rates and terms to borrowers with good credit. Online lenders typically have a streamlined application process and may be able to offer faster approval and funding times than traditional lenders.

When choosing a lender for your mortgage, it's important to consider your financial situation and goals, as well as the lender's reputation, rates, and fees. Working with a reputable lender who offers competitive rates and terms can help you save money over the life of your mortgage and achieve your homeownership goals.