Where do I go to get a mortgage?

There are two basic options for arranging financing. You can work directly with a bank or financial institution, or you can contact a mortgage broker. Your real estate agent will likely have relationships with many people in the field, and be able to provide you with several options for consideration.

General information on the types of lenders are listed below.

FINANCIAL INSTITUTIONS

The key to finding the right lender is to shop around. Many different institutions lend money for mortgages, including banks, trust companies, credit unions, insurance companies and finance companies.

If you want to work directly with a financial institution, it will save you money to speak with more than one lender because the terms and options of each organization will vary.

Some lenders, such as credit unions, deal only with members. But don't be shy about approaching new institutions. For example, if you'd like to get your mortgage at a trust company, you don't need to have to have a savings account there.

MORTGAGE BROKERS

Mortgage brokers don't usually lend money but rather put you in touch with others who do.

Brokers are independent, which means that they are not affiliated with any specific lending institutions. Their role is to find the lender with the terms and rate that will best suit you.

In some cases, the mortgage broker will charge you a fee for services. This charge is more likely if you have a poor credit history and will probably be a small percentage of the value of the mortgage- 1% to 2%. In most instances, the broker's fees are paid by the lender.

If you find a mortgage broker that you can trust, and don't want to spend time "comparison shopping", this may be a good route for you to take.