A first lien loan is the mortgage placed on the home before any other loans are taken out. It is usually the loan you use to buy the home and may be the largest loan on the home. The lender of a first lien loan has first claim on the home in the case of default.

There are several types of lenders who specialize in making loans on homes.

S&Ls and MSBs. These are savings and loan associations and mutual savings banks—depository institutions that offer checking and savings accounts and use the money to make loans. Most of these institutions also operate mortgage banking operations, which makes available to them a wider variety of loans they can keep or sell. Because of certain regulations, most of the loans they make are home mortgages. The institution you deal with will probably be a local association or branch, but in some cases out-of-town lenders will be actively making loans in your area. More->