Shopping for the Right Mortgage Lender
Buying a home is not really an easy task, even if there are available realtors who would be just as willing to assist you in closing a deal to own a house, because the first thing in mind is how to get a high percentage financing at low interest rate from a good mortgage lender. Part of your research must concentrate on understanding the various types of mortgage lenders and how they operate.
First time home-buyer programs that are promoted in the market in collaboration by the local government are most often handled by mortgage banks because they have the financial strength to finance these programs and are experienced in dealing with current market value of residential homes at low interest, fixed rates. One of the observations found in mortgage banks is that due to its economic capacity to be able to finance mortgage loans, they are confronted with so many loan applications which take time to be approved as they are strict with the loan requirements. In instances when your loan is not approved, most mortgage banks will allow their loan officers to broke your application to another lending institution.
The second best mortgage lender to go to is a savings and loans institution, which is better known as a portfolio lender. While mortgage banks have a more standard loan guidelines, the portfolio lenders are more concentrated on the applicant’s savings history and income capability. While it is easier to get a loan from a portfolio lender, however, the amount of loan approved and its corresponding interest rate may not be as attractively competitive as those coming from mortgage bankers. Consider, too, other lending companies that function as mortgage and savings and loans.
Another and better approach to secure a house loan at a faster time is to ask assistance from a mortgage broker firm, whose reputation is reliable in the industry based on the fact that it has gained the trust of many wholesale lenders and loan officers. Mortgage brokers have these advantages: they have the knowledge as to which company you can better apply for a house loan, portfolio lender or mortgage banker, and they know how to put together again your loan in a different strategy and submit it to another lending company.
Because of so many lagged factors in getting a loan, many big real estate companies, and sometimes in collaboration with builders, have opened their own mortgage lending firms, as well, to cater to the needs of their client, which translates to allowing people to own a home on a faster time table, but with the accompanying scenario that the set-up is totally controlled by the real estate company with respect to the loan rates. It is in the interest of loan applicants to be cautious into entering any kinds of offers and that it would be good to study each one.