You came across several options when the time comes to choose your mortgage. Not only the different types, terms and options vary for mortgage but also there are several options when it comes to choosing the lender for your loan. Choosing the suitable lender should be a wise decision because not all lenders offer all types of mortgage. It should be important that your lender offers you the mortgage program suitable for you in competitive rates.


When a person considers the option of borrowing loan the first option that comes into the mind is bank. Banks offer multiple home loans to its customers. Customers rely on their brands as they are already utilizing their other financial services. Banks advertise their services on both print and television media, as well as inside the bank branches, where you are welcomed to ask about flexible mortgage rates. Banks offer variable services with numerous options according to the requirements of its customers, besides can get better rates if they are already the customers of that bank. Banks are also a suitable option in a way that banks are available almost everywhere and anyone can easily access the professional guidance to seek the help. However banks offer limited services in a way that they offer their own rates for mortgage. Customers cannot alter or bargain the rates for lower price. The bank’s options are the bank’s options; you can take them or leave them.

Credit Unions

As compared to banks, credit unions provide small percentage of mortgage. Credit unions somehow fill in the cracks left by the banks. These are independent organizations governed by their members rather than shareholders. Credit unions are known for their good customer services, although they provide very limited options as compared to other lenders. One of the challenges for credit unions when it comes to mortgage is that they do not target a wide audience because they are working on local level they may not have national identity. And that’s why many people don’t even know about their existence when exploring their mortgage lending options.

Private Lenders

Private mortgage companies offer short-term loans to its customers funded by investors. This mortgage can be approved quickly, without jumping from one option to the other as in case of other lenders. Private lenders are best suitable to those who have bad credit history or cannot meet the needs of conventional lenders. Private mortgage is also an attractive option for property investors because the law requires a 20% down payment for non-owner-occupied properties, and many property investors don’t have that kind of cash upfront. Private mortgages carry higher than average interest rates, but since they’re interest-only loans where payments don’t go toward the principal, the monthly payments are lower – ideal for an investor who plans to resell a property for a profit within a short period of time. Private mortgages are also an option for people who need bridge financing, a loan for the period in between one mortgage and another.

Private mortgages aren’t eligible for mortgage insurance, so if the borrower defaults on the mortgage, then the private lender is on the hook for the property. Because of this, private lenders are interested in the particular property and the value of the surrounding area just as much as or even more so than the credentials of the individual borrower. The lender wants to know that they can sell the property quickly and recoup their money if need be. In addition to higher interest rates, there are fees associated with private mortgages, such as lender fees, mortgage broker fees, legal fees and an appraisal. Private mortgages can become a costly option for borrowers if not managed wisely.

If you are looking for a lender Avon Financial can get you its best mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage.

Contact us:

Benefits of a Mortgage Broker
Why Avon Financial
Mortgage Glossary