Banks
Banks take deposits and may keep some mortgages on their books. They are supervised by federal or state banking regulators. Some offer relationship discounts to existing customers.
Credit unions
Credit unions are member-owned and may offer portfolio products for members. You must qualify for membership.
How different types of mortgage lenders operate, are regulated and may serve borrowers differently.
Nonbank mortgage companies
Independent mortgage companies focus on lending, often sell loans to agencies or investors and are licensed and examined by state regulators. Many large lenders today are nonbanks.
Same disclosure rules
All must provide Loan Estimates and Closing Disclosures and follow ability-to-repay rules.
Portfolio loans
Lenders that hold loans can offer products outside agency guidelines, such as certain jumbo loans, under their own rules.
Choose on substance
Compare pricing, service and licensing, not the type of institution alone. A same-day Loan Estimate from each is the fairest test.
Service and technology
Lenders differ in technology, staffing and communication. Some use online portals and electronic signing, while others rely more on personal contact. Ask how you will receive updates and who answers questions after hours. Ask also whether your loan will be serviced in-house or transferred after closing, since that affects who you call for years, and whether local staff can help with escrow questions.
Sources
Sources checked 10/23/2026. General education only; confirm current rules with official sources and a licensed lender.