Your expectations when working with mortgage lenders in Maryland 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.

Brokers that provide mortgages in Maryland 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 when considering which Maryland mortgage loan to get:

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

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
The best contacts and resources to help you get it done

Get loan offers through mortgage brokers in Maryland

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: Primary Residential Mortgage is based in Largo and offers an online customer assistant to help you in the loan process. American Eagle Mortgage in Fallston and offers a range of loan programs for customers in Maryland.

Obtain a referral for Maryland mortgage companies 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: Exit Bennett Realty in Upper Marlboro provides extensive information for buyers including getting a mortgage. Advance Realty is located in Bel Air and uses a variety of mortgage companies in Maryland.

Solicit quotes directly from mortgage companies in Maryland

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: Community Bank Mortgage in Preston offers a long and short application along with general information on mortgage loans. American Equity Mortgage is located in Owens Mills and provides an online application form.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Maryland 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 Maryland can help you secure the best home loan possible from a variety of mortgage lenders. Whether you’re in the market for a condo in downtown Bethesda, a vacation spot in Ocean City or a waterfront home in Baltimore, you’ll need a mortgage. In Maryland, mortgage lenders are plentiful, but finding one that offers the best terms and options can be time-consuming. Maryland mortgage brokers can help you save time in your search for financially attractive mortgage loans.

Mortgage brokers have the experience and connections to examine deals from thousands of different mortgage lenders in Maryland. When hiring mortgage brokers in Maryland, 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 Annapolis is vastly different from the Gaithersburg market.

When searching for a mortgage lending company in Maryland:

1. Make sure you're working with reputable mortgage companies in Maryland 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 Maryland.
3. Don't limit yourself to mortgage lenders in Maryland or Maryland mortgage brokers. National loan originators and brokers may offer the best terms on Maryland

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

Search local Maryland mortgage brokers and mortgage lenders associations

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

I recommend: Check out the Maryland Mortgage Bankers Association to search for registered lenders in your area. Or, to choose a reputable lender, you can go to the National Association of Mortgage Brokers, where you can search for members of the local Maryland Association of Mortgage Brokers.

Consider local and regional banks for Maryland mortgage loans

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

I recommend: You can search for a local bank or credit union that offers mortgage loans at the Maryland Department of Labor, Licensing and Regulation, Mortgage-X.com or at Loan.com.

Use online sources to search for Maryland mortgage companies

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

I recommend: MortgageLoan.com lets you search their list of Maryland mortgage brokers and lenders by city. Check mortgage rates from lenders at Marylandmortgageshop.com.

Work with national mortgage lenders for Maryland mortgage loans

Many national mortgage brokers and lenders offer Maryland 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 Maryland mortgage loans.

Check with legal authorities about mortgage companies in Maryland

Make sure the mortgage companies in Maryland you're considering are trustworthy and haven't been reported by borrowers for unethical business practices.

I recommend: Contact the Better Business Bureau of Greater Maryland to check up on Maryland mortgage companies.

Find out what local experts are saying about Maryland mortgage companies

Local real estate experts, such as columnists and area bloggers, can provide information on mortgage lenders and mortgage brokers in Maryland and are a great source of tips on the market for house hunters.

I recommend: Urban Trekker is a real estate blog devoted to Maryland and the Metro DC area. Or check out The Real Estate Wonk blog by Baltimore Sun reporter Jamie Smith Hopkins for info on the local real estate market and mortgage lenders.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  A Maryland mortgage company should be familiar with Maryland fees and should have a network of local appraisers and title companies to make the process go more smoothly.
• •  Maryland 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 Maryland 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 Maryland 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 mortgage lenders in Maryland.

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 Maryland. Your best strategy should be to select a large number of Maryland mortgage lenders and eliminate candidates as you make your criteria more selective.

A mortgage broker can help you save time in your search for Maryland 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 Maryland 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 a Maryland mortgage company is reputable.

3. Search online to find the terms for a variety of mortgage lenders in Maryland. While the interest rate is important, there are other terms you should also consider.

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

Search for reputable mortgage brokers in Maryland

Maryland 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 Maryland Association of Mortgage Brokers provides the criteria that its members must meet. The Department of Labor, Licensing and Regulation allows a search of license holders by location, company and individual.

Find a directory of mortgage lenders in Maryland

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: Lenders Nation Wide has a list of links to featured mortgage lenders in Maryland. homemortgagefinancing.us allows you to apply directly to selected mortgage lenders and also provides additional resources for mortgage financing.

Research mortgage companies in Maryland

There are many research sites in Maryland 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: The Maryland Mortgage Broker Directory lists links to mortgage brokers in Maryland by city. The Mortgage Broker Directory lists contact information for selected mortgage brokers in Maryland. It also has resources and articles on mortgages.

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 Maryland 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.

Mortgage lenders in Maryland enable business owners and real estate investors to purchase property within the state at affordable rates. Many companies are available throughout the state. Before an investor starts to work with these lenders, they should understand the terms most often associated with loans and applications. Terms like fixed rate mortgage, annual percentage rate and construction loan should be understood so an investor can choose the right loan.

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

Mortgage brokers

Mortgage brokers provide a potential property buyer with mortgage options available to them from various lenders. The broker works to find loan options for the borrower.

I recommend: The Maryland Association of Mortgage Brokers provides more information on mortgage brokers, including how consumers and businesses should work with them.

Fixed Rate Mortgage (FRM) vs. Adjustable Rate Mortgage (ARM)

When considering mortgage lenders, many borrowers will want to know what types of mortgages are offered. Fixed rate mortgages are the most traditional. They have an interest rate that will not change or adjust throughout the life of the loan. The opposite type of loan is an adjustable rate mortgage, or ARM. The interest rate on this type of loan may adjust one time per year according to the contract details.

I recommend: MortgageLoan explains what fixed rate mortgages are and how they affect borrowers in Maryland.

Commercial real estate financing

Commercial real estate financing is a term used to describe the many types of secured loans available to business owners. This includes loans for single family and multifamily residential properties, income producing properties, commercial properties and institutional properties.

I recommend: Branch Banking & Trust, a Baltimore-based mortgage lending company, explains the options available to borrowers in commercial real estate financing.

Annual Percentage Rate (APR)

The annual percentage rate, commonly referred to as APR, is the interest rate charged by the lender to the borrower purchasing real estate. This rate is used to determine the 'true cost of a loan' and must be provided to borrowers by mortgage lenders prior to the application process.

I recommend: Carrollton Mortgage Services has more information about annual percentage rates.

Construction loan

A construction loan is provided to property owners wishing to build a house or other dwelling. This loan is secured by the real estate, but is based on the estimated value of the completed project. Two types of construction loans exist: a new home construction loan and a renovation loan.

I recommend: Bank of America is a mortgage lender in Maryland offering construction loans.

Small Business Administration (SBA) business lending

The Small Business Administration offers several loans for business owners including the SMB 7(a) and SBA 504 programs. Local lenders can help businesses qualify for these loans, which may allow them to purchase, refinance, cash out or invest in commercial real estate.

I recommend: Municipal ECU of Baltimore, a mortgage lender, offers more information about SBA business lending options.