Welcome to the Internet

In this day and age most people are researching their home purchase, including financing, on the internet. There is a wealth of information at your fingertips. The problem is that it can be overwhelming.

Generally, a lenders website only offers the programs and products that they have to offer. This may be fine in most cases, but, there may be a better mortgage solution out there for you. Not all lenders have all of the programs that you may qualify for.

Banks can offer the best conventional rates because they often loan their own investors money. Their rates and costs are low because they do not generally take on risk. If you have excellent credit, steady income and a large downpayment it is hard to go wrong with a bank Local banks are also great if you are buying a special property. Because they can warehouse the loan, and not sell it, they have better leniency is financing a non-standard property. A non-standard property could be a home that is unique to the neighborhood and would have trouble appraising. Sometimes a bank can grant a mortgage to a good customer on the strength of that customers financial record or potential. 

Mortgage Bankers are technically like banks but their main business is in real estate lending. They originate loans that they sell on the secondary mortgage market, at a profit. They can take on more risk but the costs and interest rate will be slightly higher. 

Mortgage Brokers only originate loans to sell to investors on the secondary mortgage market. The loan originators are paid commission based on the volume of loans that they originate. A mortgage broker does not have all of the same programs that the Bankers and mortgage bankers do but they will work harder to get you approved. They also have access to investors that will give you a loan at a higher rate (B-Paper Loans) If you have problems with credit, income or down payment, this is where you should start.

Internet Companies That Originate are attractive but they generally refer you to a regional lender for a referral fee. Guess who intimately pays the fee. Sometimes it works out alright but, If I have a problem with a lender the last thing I want to have to do is deal with a maze of telephone menus and voice mail. I want to go there and physically talk to an accountable person. 

Credit Unions and  Insurance Companies are also good sources for mortgage funding. If you belong to a credit union you should check out their programs.

Real Estate Agents that originate loans also. Never use one! That is all I'm going to say on the subject. it is simply a conflict of interest.

The problem is that when you check with one of the above entities, they will try to sell you on using themselves, even if that product is not the best for you.

Besides the normal search for a good rate and reasonable closing costs there are other programs that you may qualify for that a specific lender does not have or cannot offer you. There are Free Grant Programs, Low interest rate programs, first time buyer programs, Zero Down Programs, Credit Repair Programs etc... etc... etc... You may save thousands of dollars going to the right source.

Some lenders may offer one or two of the above, or maybe none.

A good Real Estate Agent can refer you to the best source of funding based upon your situation, without prejudice and without getting a referral fee. That is why as important as it is to get your mortgage started early, you should talk to a qualified REALTOR before you actually apply for a loan.