What Is a Lender and Where Do I Find One?

When you want to borrow money, the money you need will come from a mortgage lender. They are like financial institutions in the business of making loans, but they can also be individuals who might be your friends and family from some organizations that are willing to lend.

It would be a good idea to shop around for getting the best one for you. Your best a deal might not be with the first lender you talk to, and you can't necessarily count on the biggest advertisers (or brand names) to deliver the best deals. The only way to know you're getting a good deal is to talk with several lenders and compare the options.

You can ask from the trustworthy people you know and respect for their suggestions like your friends, family, advisors, mentors, and co-workers who may have borrowed money in the past and they can suggest lenders they've had good experiences with. If possible, ask somebody with professional experience about the type of loan in question (if you need a home loan, ask a trusted real estate agent, for example).

If the current organization you work with doesn't lend money, it's a safe bet that they can suggest a reputable mortgage lender who does what you need. Banks and credit unions are a good choice for getting Personal loans, auto loans, credit, and home equity loans, small business loans.

For some loans, you'll need a lender that specializes in a particular type of loan. Using the right loan for the job might be a requirement. For example, it's hard to borrow enough money to buy a home unless you secure the loan with a mortgage - to do that you'll need to find a mortgage lender. What's more, it might be in your best interests to use a specific type of loan (for example, federal student loans come with certain benefits, the interest rate might be better than you'd find elsewhere, and you might be able to qualify without a credit history).