Your expectations when working with mortgage lenders in Arizona depend on the type of lender. A lender that works directly for a lending institution will provide all of the options that particular lender allows and that you qualify for. Other lenders actually work as brokers that shop your loan to a variety of lending institutions.

Mortgage brokers in Arizona can provide access to more lenders but may not share your best interests. Brokers usually receive a commission from the lender and will tend to push mortgages that offer the greatest profit for them.

There are three points you should discuss with a mortgage lending company in Arizona when considering which one to use:

1. Interest rate on Arizona mortgage loans. Rates change quickly in the volatile housing market and your credit rating will also affect the rate you can expect from Arizona mortgage companies.

2. Points on the loan. Prepaid mortgage interest points will lower your interest rate but other types of points may not benefit you at all.

3. Closing costs. Lenders charge fees for various services and you will want to know what they are as soon as possible.

Action Steps
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Get loan offers through Arizona mortgage brokers

Talk with several of the broker's recent clients before getting a loan through that broker. Find out if the broker was able to meet all of their expectations.

I recommend: Accesable Mortgage in Phoenix serves customers throughout Arizona and offers a range of financial tools. ADL Mortgage is based in Cave Creek and brokers commercial, residential and refinancing mortgages.

Obtain a referral for mortgage lenders in Arizona from a real estate agent

Real estate agents usually send a substantial amount of business to their preferred lenders. A smart mortgage lender will take good care of these referrals.

I recommend: Scottsdale Paradise.com provides instructions on obtaining mortgage lenders and specifically recommends the lenders that it uses. Bob Hakes Real Estate lists all of its business partners and also allows you to directly email them.

Solicit quotes directly from mortgage companies in Arizona

You may want to contact a lender directly if you are already comfortable with one. Local lenders should be familiar with specific factors that affect the housing market in your area.

I recommend: Surefast is in Phoenix and offers an online application with a fast, reliable loan process. Westar Mortgage & Realty in Tuscon provides residential and commercial loans along with other real estate services.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Arizona mortgage lenders may sell your loan to another company. Don't be surprised if you receive a notice from both the old and new lending company advising you of the change and providing instructions for making your payments to the new lending company. The right to service your loan also includes managing your escrows for insurance and property taxes.

Mortgage brokers in Arizona can help you secure the best home loan possible from a variety of mortgage companies. In Arizona, mortgage lenders are plentiful, but finding one that offers the best terms and options can be time-consuming. Arizona mortgage brokers can help you save time in your search for financially attractive mortgage loans.

Mortgage brokers have the experience and connections to examine thousands of different mortgage lenders and deals. When hiring mortgage brokers in Arizona, look for a professional who has a keen understanding of the residential market in your particular area. That’s because housing markets vary tremendously by region, as the market in Tempe is vastly different from the Phoenix market. To find the best mortgage lenders in Arizona for you:

1. Make sure you're working with reputable mortgage companies in Arizona by checking records with government and better-business groups.
2. Start your search online and look at rates and terms on a variety of websites for lenders and mortgage brokers in Arizona.
   
3. Don't limit yourself to a mortgage lending company in Arizona or an Arizona-based broker. National loan originators and brokers may offer the best terms on Arizona mortgage loans.

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Search local Arizona mortgage brokers and lenders associations

Arizona mortgage lenders associations and mortgage brokers associations can help you find professionals who understand the local housing market.

I recommend: At the Arizona Association of Mortgage Brokers, you can search for brokers by city. The Arizona Mortgage Lenders Association offers a variety of helpful consumer tools and allows you to search for lenders by city or ZIP code.

Consider local and regional banks for Arizona mortgage loans

Local and regional banks are some of the most common mortgage lenders in Arizona.

I recommend: To find banks that are mortgage lenders in Arizona, visit Arizona Business Online, LocalLender.info or USCITY.net.

Use online sources for Arizona mortgage companies

Numerous online sources can help you shop for the best mortgage lenders in Arizona.

I recommend: MortgageLoan.com lets you search their list of Arizona mortgage brokers and lenders by city. Many Arizona mortgage companies and brokers are listed online, such as AZ Mortgage Lender, Arizona Mortgage Group and De Anza Capital.

Work with national mortgage lenders

Many national mortgage brokers and lenders offer Arizona mortgage loans that may be right for you.

I recommend: Consider national lenders, such as GMAC Mortgage or Wachovia, or check out Equifax, which offers a nationwide mortgage referral service. Veterans may qualify for a loan through the VA Mortgage Center.com or USAA.com, where you can get pre-approved for Arizona mortgage loans.

Check with legal authorities about mortgage companies in Arizona

Make sure the Arizona mortgage lenders or mortgage brokers you're considering are trustworthy and haven't been reported by borrowers for shady business practices.

I recommend: Contact the Better Business Bureau of Central/Northern Arizona or of Southern Arizona to check on mortgage companies in Arizona. The Arizona Department of Financial Institutions also lets you check them out first.

Find out what local experts are saying about mortgage companies in Arizona

Local real estate experts, including your own real estate agent, can provide information on Arizona mortgage brokers, lenders and other tips on the market for house hunters.

I recommend: Arizona Mortgage Guru and the Bloodhound Blog are written by Arizona-based real estate experts and can keep you updated on trends in local real estate and Arizona mortgage loans. Find real estate agents at the Arizona Association of Realtors.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  An Arizona mortgage company should be familiar with Arizona fees and should have a network of local appraisers and title companies to make the process go more smoothly.
• •  Arizona mortgage loans from your bank are negotiable. Shop around for rates from mortgage brokers and mortgage companies before approaching your local bank.
• •  Rate quotes on Arizona mortgage loans should all be from the same time period due to market fluctuations.
• •  Tied mortgage brokers don't charge an upfront fee, but work with a limited number of mortgage companies in Arizona who pay them a commission should you choose their mortgage.
• •  An independent broker charges an upfront fee but casts a wider net, offering a variety of deals from a host of Arizona mortgage companies.

Choosing a mortgage lender from the many banks, brokers and lenders is usually the most challenging step in making the most of mortgage lenders in Arizona. Your best strategy should be to select a large number of Arizona mortgage lenders and eliminate candidates as you make your criteria more selective.

A mortgage broker can help you save time in your search for Arizona mortgage loans but they are not able to negotiate terms you would not be able to get for yourself and they are not obligated to get the best deal for you.

There are three things you can do to locate the best mortgage lending company in Arizona for your needs:

1. Ensure your mortgage broker has specific expertise in your local real estate market. Housing markets can vary greatly within a short distance.

2. Check records with better business groups and government sources to ensure an Arizona mortgage company is reputable.

3. Search online to find the terms for mortgage lenders in Arizona. Be sure to use the same time period when comparing interest rates due to the volatility of the real estate market.

Action Steps
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Search for reputable mortgage brokers in Arizona

Arizona mortgage brokers are closely regulated and there are a variety of online resources you can use to investigate a mortgage broker's credentials.

I recommend: The Arizona Association of Mortgage Brokers can locate members by individual or company name. The Arizona Department of Financial Institutions maintains an online list of current license holders.

Find a directory of mortgage lenders in Arizona

There are a variety of websites that allow you to select a list of mortgage lenders by state. These sites typically provide other criteria as well.

I recommend: FannieMae has nationwide list of lender partners that you can search by state. It also provides a wealth of information for business partners and home buyers. Mortgage-X provides a list of links to mortgage lenders in Arizona and also has numerous mortgage-related resources.

Research mortgage companies in Arizona

There are many research sites in Arizona that provide information independent of any one mortgage lender. They may be able to offer specific advice on the housing market in your area and frequently have other resources to help you in your search for a mortgage loan.

I recommend: Homethinking provides specific information on mortgage lenders in Arizona and also has a summary of the mortgage lending market. ManagingMoney.com allows you to compare mortgage lenders in Arizona based on the type and purpose of the loan.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  An independent broker will charge you a fee upfront but will contact a larger number of Arizona mortgage lenders. Tied mortgage brokers don't charge an upfront fee but only work with a limited number of lenders. These brokers usually get a commission from the lender upon approval of the loan.

If you plan to buy property in Arizona, you need to be aware of the many groups that provide mortgage funding. Homes can be financed through mortgage brokers, lending companies, banks and/or government programs. Finding the right source for a loan will be easier if you contact the statewide organizations that offer advice and contact information. Some of these groups also provide education and support for professionals engaged in the mortgage business.

Action Steps
The best contacts and resources to help you get it done

Arizona Association of Mortgage Brokers

The Arizona Association of Mortgage Brokers is an organization for Arizona-licensed mortgage brokers. This non-profit group emphasizes professionalism and ethical conduct. Consumers can contact them for information on mortgage brokers who are members.

I recommend: Visit the Arizona Association of Mortgage Brokers for a description of the organization as well as the regulations the government requires it to follow. Other links on the site give access to frequently asked questions about mortgage brokers and a list of Arizona members.

Arizona Mortgage Lenders Association (AMLA)

The Arizona Mortgage Lenders Association (AMLA) is a networking organization that provides legislative representation and educational opportunities for its members. In addition, it holds its members to a strict code of ethics when they deal with the public. Originally based in Phoenix, it now has branches in various parts of the state.

I recommend: More about the code of ethics for the Arizona Mortgage Lenders Association can be found at their website.

Arizona Department of Financial Institutions

The Arizona Department of Financial Institutions oversees and regulates the financial industry in the state. Its goals are to protect consumers, encourage economic growth, and support integrity within the banking and mortgage industry.

I recommend: The Arizona Department of Financial Institutions has mortgage information for consumers. Check out their website for updates to both the National Mortgage Licensing System (NMLS) and Loan Originator Licensing.

Arizona Anti-Deficiency Law

The Arizona Anti-Deficiency Law, also known as the Arizona Foreclosure Law, allows mortgage companies to sue homeowners for the difference between the foreclosure's selling price and the amount of the loan that is still outstanding. In some cases, mortgage companies who lose money on foreclosures take the defaulted homeowner to court and get a judgment for this balance owed, called a deficiency.

I recommend: On KEYTLaw.com, lawyer Jeana Morrissey explains more about the Arizona Anti-Deficiency Law.

Homes for Arizonans

Homes for Arizonans is a special initiative of the Arizona Department of Housing to help those who otherwise could not qualify for mortgage loans. This program provides downpayment and closing-cost assistance based on a sliding scale that is dependent on income. Financial help from Homes for Arizonans is available to all Arizona residents except those in Pima and Maricopa counties, and it may be combined with other government programs.

I recommend: The Arizona Department of Housing explains the initiative and lists the guidelines and qualifications for applying.

Arizona Housing Finance Authority (AzHFA)

One of the main programs of the Arizona Housing Finance Authority (AzHFA) is its downpayment assistance program. Other programs include Multi-Family Mortgage Revenue Bonds, Mortgage Revenue Bond (MRB) Home Loans for First Time Buyers, and Mortgage Credit Certificate (MCC) Tax Benefits for First Time Buyers. AzHFA aims most of its mortgage assistance toward first time homebuyers, but the organization also assists people who have not owned a home in the past three years.

I recommend: Information on the downpayment assistance program as well as other AzHFA offerings is available from the Arizona Housing Finance Authority.