Professionals who might help you get a mortgage

The process of buying a home can be intimidating, especially for those men and women who have never before owned their own homes. Nowadays, more homeowners are choosing to get preapproved for mortgages before they begin searching for a home in an effort to make the home-buying process go more smoothly when they find the home for them.

One of the first things buyers must do when seeking preapproval is find the right mortgage lender. There are many different ways to find a mortgage lender who will fund your home loan. Prospective homeowners would be wise to familiarize themselves with mortgage lenders before beginning the preapproval process.

The following are a few terms prospective home buyers should know before they begin the process of buying a home.

* Retail lender: These are lenders who will reach out directly to prospective home buyers. Retail lenders include banks with loan officers in local branches, though many banks are also wholesale lenders.

* Wholesale lender: A wholesale lender is one who funds a mortgage acquired through a mortgage broker. A wholesale lender will buy the mortgage from the broker after the broker has found the customer and processed the loan.

* Mortgage broker: Mortgage brokers are essentially matchmakers. A mortgage broker will examine a prospective buyer's finances and then work to find the buyer a lender who can provide him or her with the best rate and terms. The broker may charge buyers a fee, but the broker will earn the bulk of his or her money when the buyer is matched with a lender.

* Mortgage banker: A mortgage banker will fund the loan initially. But mortgage bankers often sell the loan to secondary lenders. Many men and women might be familiar with Fannie Mae and Freddie Mac, both of which are secondary lenders. A mortgage banker will borrow money from the a bank to fund the initial loan, then repay that bank if and when the loan is sold to a secondary lender.

* Portfolio lender: A portfolio lender is typically a credit union or community bank that uses deposits from its customers to fund loans that it will keep in its portfolios.

* Loan officer: Loan officers can be very helpful to buyers, helping them through the loan application process and offering advice on finding a mortgage that best meets a customer's needs. A loan officer may be referred to as a mortgage consultant or a home loan consultant, and many will earn a commission on the loan once it is finalized.