With hundreds of mortgage deals on the market, it’s hard to know where to start. You can use a mortgage broker, or shop around yourself and go direct to the lender. However, let’s commence with the seven common sources where you can get a loan.

1. Mortgage Brokers

A mortgage broker is a middle-person who brings together lenders and borrowers. It’s important to ask about the variety of products offered as this will vary from broker to broker.

Points to consider when making a loan with this source:

* Fees are paid by the buyer or lender or both.
* Loans at “par” mean the buyer is not paying a fee.
* Yield-spread premiums (YSPs) are typically disclosed at closing and paid by the lender.

2. Mortgage Bankers

Mortgage bankers work for a bank and they may represent more than one bank but the loans they make are bank loans, funded by the bank.

Points to consider when making a loan with this source:

* Fees are generally not negotiable and are set by bank policy and loan products are limited.
* The banker may not be licensed.

3. Commercial Banks

Citigroup, Bank of America, and Wells Fargo are good examples of well known commercial banks. Commercial banks offer a wide variety of services.

Points to consider when making a loan with this source:

* Primary source of business is not making mortgage loans.
* Bank rates are competitive.
* Your bank may offer a discount or incentive on your loan if you maintain an account at that institution.

4. Savings & Loan Associations

Savings and loans accept deposits from customers into savings / money market accounts and pay interest on those accounts. Many savings and loans are now regulated by the Department of U. S. Treasury, Office of Thrift Supervision.

Points to consider when making a loan with this source:

* Primary source of business is making real estate loans.
* Savings and loans do not make business or commercial loans but lend for construction, purchase or home improvement purposes.
* The process for obtaining a mortgage is a bit easier than going to a commercial bank.

5. Credit Unions

Credit unions do not pay federal taxes and enjoy certain taxable advantages that other lending institutions do not. They are formed by a group of individuals with a common interest.

Points to consider when making a loan with this source:

* Customers must meet qualifications to be eligible for membership.
* Interest rates and terms are typically very attractive and competitive.
* Many credit unions do not sell their mortgage loans on the secondary market.

6. Private Individual

Anybody with money in the bank can make a real estate loan to you.

Points to consider when making a loan with this source:

* The seller can carry back common financing instruments such as a mortgage, trust deed or land contract.
* No appraisal or title policy may be required, but you should still obtain an appraisal and title protection.
* Owner financing works best on properties that are free and clear.

7. Stock Brokerages & Online Lenders

A few easily recognizable names are HFC Home Loans, INGDirect, Charles Schwab, and Ditech.

Points to consider when making a loan with this source:

* If you need to shake hands with your loan officer in person, an online lender might not be for you.
* Internet lenders work best for sophisticated borrowers with great FICO scores who know what they want.
* Contact only reputable and known companies with secure sites, and stay away from fly-by-night operators.