There are 3 basic types of loan companies: direct lenders, mortgage brokers, mortgage bankers. The most typical loans are: Conventional Conforming and Conventional Non-Conforming loans; VA, FHA (Government insured loans). There are advantages and disadvantages associated with these very different companies and loans.

Direct Lenders

Banks, Savings and Loan Companies and Credit Unions. These institutions will often keep the loans in their portfolio, rather than selling them to other investors. If you have a sizable amount of money on deposit with one of these lenders, you may get a better interest rate. You may also be borrowing the money for a short period of time, like a "swing loan". Mortgage bankers and brokers usually do not do these types of loans.

Mortgage Broker

This lender assembles all the information and data required for placing the loan and then submits the information to someone else to approve and underwrite, like the Mortgage Banker.

Mortgage Bankers

This lender is approved for the following: FHA approved Direct Endorsement Underwriter; VA approved Automatic Underwriter; Conventional approved Delegated Underwriter. This means that they provide "in house" underwriting and funding of standard FHA, VA, and Conventional loans. For the cost of a credit report, (about $17.00) you know what you are approved for within about 48 hours, and all loan documents are generated from one location. They also have the ability to access large financial conduits for non-conforming loans.