1. Mortgage Bankers: A true Mortgage Banker is a lender that is large enough to originate loans and create pools of loans which they sell directly to Fannie Mae, Freddie Mac, Ginnie Mae, jumbo loan investors, and others. Any company that does this is considered to be a mortgage banker. They can very greatly in size. Some may service the loans they originate, but not all of them will. Most true mortgage bankers have wholesale lending divisions. Examples of two of the largest mortgage bankers are Countrywide Home Loans and Wells Fargo Mortgage. One is associated with a bank and the other is not, but both are most correctly classified as mortgage bankers. A lot of companies call themselves mortgage bankers and some deserve the title. For others, it is mostly marketing.

2. Mortgage Brokers: A mortgage broker is not a lender; he offers his valuable service to find the best lender for you against a brokerage fee. Taking the help of a mortgage broker is the best way to shop around for home loans. A reputed broker is sure to avail a good home loan for you. But there are numerous fraudulent brokers in the market, so check well before you enter into a deal with one. It is preferable to work with a broker who has got a government license.

3. Secondary Market Investors: Secondary market investors do not deal directly with the debtors. They purchase loans from banks and the mortgage lenders to ensure the creditors are able to help people with home loans. They are very important in the housing loan market because they control the home loan interest rate and the availability of different types of loans by telling the creditors what type of loan they are interested to buy.

4. Wholesale Lenders: Most mortgage bankers and portfolio lenders are also wholesale lenders. Some wholesale lenders have their own retail branches. Others rely exclusively on mortgage brokers for their loans. Wholesale lenders offer loans to mortgage brokers at a reduced cost than their retail branches offer them to the general public. The mortgage broker adds his or her fee to the loan amount. This means that for the borrower, the loan cost is pretty much the same when he or she gets the loan from a broker as it would have directly from the retail branch of the wholesale lender. The advantage of going with the broker is that, if you are new to the concept of loans and mortgages, a mortgage broker can help you select the right type of loan. More experienced borrowers, however, may opt for borrowing directly from the lender.