Do you need a loan to buy a home? What type of mortgage lender are you going to contact? It used to be quite easy to put a name to a lender that can exactly described them along with the types of mortgages they have created over the years. The pass of time and especially the growing of the Real Estate market have served to combine, in some way, most of the terms to define them as well as to highlight some differences among them. And, we can start by doing mention of Mortgage Bankers. They are the kind of lenders that have large enough to make a loan and then create pools of loans that will be sold to Freddie Mac, Ginnie Mae, Fannie Mae or to a jumbo loan investor. Two great examples to cite are Wells Fargo Mortgage and Countrywide Home Loans. Both are called mortgage bankers.
Then, we have Mortgage Brokers. They are business companies that make loans with the purpose of brokering them to wholesale lending organizations or institutions. A broker must establish some kind of relationships with these companies. Mortgage brokers usually make transactions with lending institutions that have a wholesale loan division.
