In general there are 4 Main Types of Mortgage Lenders out there. The ones that most would prefer are smaller institutions like Credit Union and Community Banks (meaning more small town local banks). The primary reason people prefer these is that they are often more caring, accommodating, local, honest, and down to earth. While many feel that larger companies or institutions are cold, unbending, out-sourced, and overall not ideal to partner their 30yr finances with… lol.
Mortgage Company:
A company/business that solely does mortgages and nothing else. They are typically truncated with names like “BlahBlah-FINANCIAL” or “SUCH-N-SUCH Mortgage”. These companies do not offer other financial products like checking and savings accounts but are specifically focused on their mortgage offerings instead.
Credit Unions / Community Banks:
Smaller institutions that not only offer mortgages but also Personal Banking and Lending accounts such as Checking, Savings, Auto Loans, Personal Loans, Credit Cards, etc. They are also known for their more personal touch and quality customer service.
Mortgage Brokers:
Mortgage Brokers are kind of like mortgage companies in that the only thing they offer are mortgages. However, the key benefit to using a mortgage broker is that they work independent of any one mortgage company and can offer you mortgages of many types from multiple companies.
Big Banks:
Big banks all offer mortgages of many types as well as personal banking accounts like Personal Loan, Credit Cards, Checking and Savings Accounts just like Credit Unions and Community Banks… but what sets the apart is that often times Bigger Banks have worse customer service, higher rates and fees, all while having other positives such as more locations and online faculties.