Banks
Depository banks take deposits and make loans. Some keep certain mortgages on their books; many sell them. Existing customers sometimes receive relationship pricing.
Non-bank mortgage lenders
Independent mortgage companies fund loans using lines of credit and sell them to investors. They are licensed by each state where they lend and appear on NMLS Consumer Access.
Mortgage brokers
Brokers do not fund loans themselves; they place your application with wholesale lenders. Broker compensation is disclosed on the Loan Estimate and regulated by federal loan originator compensation rules.
Credit unions
Member-owned cooperatives that may offer mortgages to members. Membership requirements vary.
What is the same everywhere
- Federal Loan Estimate and Closing Disclosure rules apply.
- Loan originators must be registered or licensed through NMLS.
- Fair lending laws apply.
Choosing
The type of company matters less than the specific offer, the programs available and the service you receive. Compare Loan Estimates from more than one source.
Keep reading
This page is general education. Program rules change; confirm current requirements with the official sources linked here and with a licensed lender.