5 guides, read top to bottom, take you from Banks, Mortgage Lenders, Brokers and Credit Unions to Questions to Ask Any Lender, Broker or Credit Union.
Read in this order
How different kinds of mortgage companies work and what that means for your options.
- Depository banks take deposits and make loans.
- Independent mortgage companies fund loans using lines of credit and sell them to investors.
- How Loan Officers Are Paid1 min read
Federal rules on loan originator compensation and what they mean for borrowers.
- Federal loan originator compensation rules prohibit paying loan officers based on a loan’s interest rate or terms, which reduces incentives to steer borrowers.
- Originators can be paid by the lender or by the borrower, but not both on the same loan.
How mortgage brokers and lenders are paid, and the federal rules that limit compensation conflicts.
- A direct lender funds loans itself.
- A broker may be paid by the borrower or by the lender, but not both on the same transaction.
How different types of mortgage lenders operate, are regulated and may serve borrowers differently.
- Banks take deposits and may keep some mortgages on their books.
- Credit unions are member-owned and may offer portfolio products for members.
A list of practical questions that work with any type of mortgage provider, and why each one matters.
- Ask whether the company is a direct lender, a broker or a credit union, and who will actually fund and service the loan.
- Ask how the loan officer is paid and whether compensation depends on the loan terms.
Run your own numbers
5 calculators on this site, all blank until you type:
- Payment and amortization
- Affordability estimate
- Rent or buy comparison
- Debt-to-income check
- Closing cost worksheet
Check which programs fit
The loan finder asks six questions and points you to the programs worth reading about, with a side-by-side comparison table. It is education, not an eligibility decision.
Terms you will meet in these guides
- Loan Estimatefirst in How Loan Officers Are Paid
- Closing Disclosurefirst in How Loan Officers Are Paid
- Lender creditfirst in Questions to Ask Any Lender, Broker or Credit Union
Everything here is general education. Program rules change; confirm current requirements with the official sources below and with a licensed lender.
Sources
- Regulation Z, 12 CFR 1026.36
- NMLS Consumer Access
- Regulation Z, 12 CFR 1026.36
- CFPB: Mortgage broker vs lender
- CFPB: Loan Estimate explainer
Sources reviewed . This page was assembled from the guides on this site.