| There
are four main sources from which you can obtain a home
loan:
• Savings and loan associations
• Commercial banks
• Mortgage bankers
• Mortgage brokers
Savings and loan associations (S & Ls)
Historically, Savings and Loan organizations have concentrated
on home loans. However, with deregulation, the U.S.
government has opened the door for S & Ls to provide
checking accounts, savings accounts, personal and business
loans etc. Nevertheless, their primary lending focus
still is on home loans.
Commercial banks
The largest and most diverse of all finance institutions,
commercial banks offer a wide variety of services including
savings accounts, investments, charge cards, as well
as commercial, personal, residential and business loans,
among others.
Mortgage bankers
Mortgage bankers typically use their own money to fund
mortgages; however, they ultimately sell the loans to
another entity such as a bank, a savings and loan, pension
or retirement funds, private investors or government
agencies such as FNMA ("Fannie Mae") or GNMA
("Ginnie Mae"), which purchase residential
mortgages. When mortgage bankers sell a block of mortgages,
they often will continue to service the loan and will
be responsible for the collection of your payment. The
mortgage banker s paid a small percentage of the interest
(usually 1/4 % to 1/2 %) for this servicing agreement.
Mortgage brokers
Unlike mortgage bankers, mortgage brokers do not loan
their own money. Mortgage brokers will arrange financing
for a borrower from a lender, which could be a bank,
savings and loan, a private individual or a credit union
or pension fund. As the liaison between borrowers and
lenders, they are paid a commission or a fee, which
is paid by the borrower, the seller or even the lender.
Contact
us for more info on California mortgage providers..
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