Many types of companies are mortgage lenders. They include:

• Bank mortgage lenders
• Other lenders (mostly various types of finance company mortgages)
• Vendor 'take-back' mortgage lenders

While the seller of a property might be willing to do a 'vender take-back mortgage', there is no way of knowing this in advance. Therefore, you always need to go through the process of 'pre-approval' with a bank or other mortgage lender.

Pre-approved mortgages help you to set your house-hunting budget. A bank or mortgage lender will consider your credit history, income and payment history (as well as other factors) and then tell you how big a mortgage they will be willing to approve. Add to that number the amount of down payment you have and now you know your price range!