So, you've decided to buy a house, and you're ready for that all important next step-applying for a mortgage loan. But where should you go? After all, the mortgage business is complex, and you've realized quickly that your choices for lenders are immense. Here's a quick guide to help you understand all of your choices for lenders.
Mortgage Banker
By using a mortgage banker, you will deal with the same person from the beginning to the end of the loan process. The mortgage banker makes his money from the fees that you will pay for the loan, such as the points and closing fees. After you've closed on the loan, you may continue your relationship with the same company, or they may sell your loan to a secondary person.
Mortgage Broker
If you don't have the time to loan shop on your own, or have a not-so-perfect credit history, a mortgage broker may be the way to go for you. A mortgage broker acts as a middleman between a borrower and a mortgage banker, and generally knows where the best deals are, or which mortgage bankers are more apt to grant loans to riskier borrowers.
Credit Unions
If you belong to a credit union that should be the first place you check for your mortgage loan because they generally offer lower interest rates. Many associations, unions or even workplaces have their own credit unions.
Savings and Loan
Half of the mortgage loans in the United States are made by local savings and loans. If you belong to one, be sure to check their rates-they're likely very good.
Government Loans
A lot of people falsely believe that the government is in the business of making mortgage loans-they're not. But they do "back" certain loans, which make the lenders more apt to extend them. For the best information on government backed loans, talk to your local banker.
There are also many mortgage companies online that can help you find direct mortgage lenders and home loan brokers that will best suit your needs. This is a quick way to find a good mortgage loan and compare rates and offers from multiple lenders. When lenders compete for your business, it works to your advantage. To view our list of these recommended online mortgage companies, visit this page: Recommended Online Home Mortgage Lenders.
Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and the latest news about various types of loans.
The purchase of a new home is one of the... Read More
Having just settled in life, you are finding the rentals... Read More
A few notes of importance: This only applies to... Read More
As is the case when applying for any mortgage, be... Read More
If you owe 40 percent or less of your original... Read More
Applying for a subprime mortgage loan online can seem intimidating... Read More
Outlined below are some useful flexible mortgage tips. The most... Read More
For many seniors one of their greatest sources of security... Read More
You may think that applying online for a mortgage is... Read More
I fully realize if it sounds too good to be... Read More
Sub-prime mortgages are not that much different from average mortgages.... Read More
Some people in the real estate industry have a terrible... Read More
What does it mean to refinance? Why would anyone want... Read More
Recent news has made much of parents stretching their finances... Read More
I continue to see the same For Sale signs in... Read More
With today's relatively low interest rates and climbing property values,... Read More
Buying a home is usually the largest purchase any of... Read More
Here is a useful flexible mortgage guide. Flexible mortgages are... Read More
Real estate prices have been increasing steadily over the last... Read More
Are you wondering how to get the best Home Equity... Read More
I have written many articles on refinancing a fixed rate... Read More
From time to time, we hear a story about a... Read More
When you are hunting for a mortgage, you will find... Read More
Home equity is your own personal money machine. If you... Read More
It can happen to anyone, the roof is leaking, the... Read More
With escrow accounts the money for your home insurance and... Read More
If you do not wish to commit to living in... Read More
There are many benefits to interest-only mortgage loans. There are... Read More
When it comes to American spending habits, the sad truth... Read More
This is a great time to Refinance Your Home or... Read More
Here are some of the benefits to doing your home... Read More
You've found the home that is right for you, and... Read More
If you are in the market for a home equity... Read More
This might not be the front page news but it... Read More
Home ownership has risen sharply in recent years, and the... Read More
If bulls and the bears of the stock market have... Read More
What does it mean to refinance? Why would anyone want... Read More
So you have a mortgage, and you need to refinance... Read More
Mortgage rates typically are based off the current rates of... Read More
As a first time home buyer, there are several things... Read More
The information in your credit history helps mortgage lenders decide... Read More
Many people choose to take out home improvement loans so... Read More
If you've got a wallet full of credit cards, and... Read More
Customers who opt for an interest only mortgage, and feel... Read More
1. Never discuss your household finances over the phone with... Read More
The term 'mortgage' is assumed really controversial by people when... Read More
If you're looking for a good home improvement loan rate,... Read More
If you owe 40 percent or less of your original... Read More
Every individual needs a home and every home needs an... Read More
One of the biggest reasons homeowners refinance their mortgage is... Read More
Getting the cheapest home improvement loans isn't always easy. It... Read More
Consumers interested in purchasing or refinancing a home will pay... Read More
When choosing the right mortgage company for your home purchase... Read More
In decades past, most people who were interested in obtaining... Read More
Having just settled in life, you are finding the rentals... Read More
Home loans may seem like a bad idea for people... Read More
Almost two thirds of first time buyers accept the first... Read More
So you're thinking about building your own house, are you?... Read More
Financial difficulties are married to bad credit. It is a... Read More
"Own your home free and clear in 3 to 4... Read More
If you buy new windows, you'll not only pay for... Read More
A mortgage is a loan that is guaranteed by a... Read More
With so many lenders out there, it can be hard... Read More
Obtaining a home equity loan does not have to be... Read More
If you've got a few things around the house that... Read More
When a mortgage broker asks a borrower to pay points,... Read More
Mortgage Refinance |