When you shop for a mortgage, several different options are available to you as far as where you obtain the mortgage loan. Perhaps the most common and widely known avenue is to go through mortgage brokers or through home mortgage lenders.
Brokers shop several different loans for you for a fee, and they determine which loan program will suit your needs best. These mortgage brokers work for you, the customer, while doing most of the research and background work needed to determine what will be best for your needs.
Home mortgage lenders can be a number of different financial institutions or organizations. For example, your local bank could be a mortgage lender, and so can a number of other banks that operate both nationally and locally.
Other types of mortgage lenders are trust companies, credit unions, life insurance companies, and even private mortgage companies who lend money for land and real estate.
These are the sources of money for those seeking a mortgage and it's really up to the borrower where they would like to obtain their mortgage loan. Sometimes, mortgage lenders can be part of governmental programs like HUD or FHA.
Statewide programs also serve as mortgage lenders. In essence, it really does not matter where you obtain your loan, as long as you get a loan with the lowest fees and mortgage rates possible. This may require some research on your part but with the use of a mortgage broker, the process can be made much easier.