There are advertisements everywhere for refinancing or mortgages for purchasing property. There are lots of different sources of mortgage loans, and it can be important to understand the differences between them to make sure you are getting a good deal.
The largest and most familiar source to many borrowers is their commercial bank where they have their checking and savings accounts. Often times in the retail branches of these banks there will be mortgage loan officers available to answer questions or take your application. Although these locations are convenient and the companies household names, they may not offer the best rates.
A second source of loans are mortgage brokers. They broker out their loans to a variety of lending sources. In theory, they shop your loan around to get you the best possible deal. Many lenders offer "specials" on a weekly or monthly basis that can get you a particularly good deal if you qualify.
It is important to know that lenders can be very different in their treatment of different loans. Each lenders has their own set of "underwriting guidelines" which are the uniform rules they apply to all mortgage applicants. These rules help them decide which borrowers to approve and which borrowers to reject.
The important point to know is that one lender rejecting you should not be the end of your quest for a mortgage or refinance. There are literally thousands of different lenders out there, and they can do all kinds of loans.