Mortgage Lenders Overview
When looking for a home loan or mortgage, it is best to shop several lenders to help you get the best financing deal. You'll want to compare all the costs involved in securing and obtaining a mortgage. A mortgage whether it is for a second mortgage loan, refinance or home purchase is product. The price may vary from shop to shop, and the terms and price may be negotiable. By comparing lenders and negotiating, you can most likely save thousands of dollars.
Home Mortgage lenders are financial institutions that lend money to people for the purchase of real estate. You can easily find qualified mortgage lenders because there are thousands of them throughout the United States. Home mortgage loans are available from mortgage companies, banks, credit unions and savings and loans.
Some lenders are very small, such as local banks that focus on lending money for real estate in a small geographic area. There are also larger lenders who provide mortgage loans through an entire state or region and there are lenders who make loans nation wide. There are also mortgage lenders that are associated with government agencies that guarantee or provide funds for real estate loans such as HUD or Fannie May. Different lending institutions will quote you different prices; therefore borrowers should always contact several lenders to make sure you're getting the best deal.
For those looking to purchase real estate, the first concern, usually, is securing a low interest rate, since this determines your monthly payment. Different lending institutions will quote you different prices; therefore borrowers should always contact several home mortgage lenders to make sure you're getting the best deal. Ask for current mortgage rates to compare each lender and find out if the mortgage interest rates being quoted are the lowest for that day or week.
When looking to obtain a loan you can approach a mortgage banker or lender directly, or you can go to a mortgage broker. In many cases, whether you are working with a lender or broker may not always be clear because some financial institutions operate as both lenders and brokers.
The loan officers at a bank, credit union or other lending institution work to sell and process mortgages and other loans originated by that lending institution. They often have a wide variety of loans types to draw from, but all loans originate from one lending institution. The loan officer will take your application and try to find the best home loan for you. If your personal credit is approved, the officer moves forward to process the purchase. A lenders first offer is usually a starting point, so continue to negotiate for a better deal.
About Mortgage Brokers
You can also obtain a home loan through a mortgage broker. Brokers put together the transaction but do not lend the money directly. Brokers have access to many lenders, and therefore find the best home mortgage lenders for you. Brokers often get you multiple quotes from various lenders to give you the option of many different loan products and terms. Just as you should consider getting quotes from various lending institutions, you should also contact several brokers.
Make sure you know what all the costs associated with the loan are. When shopping for a loan, compare costs. Lenders will generally give you an estimate of the costs such as loan origination or underwriting fees, broker fees, and transaction, settlement, and closing costs. These can include application fees and appraisal fees as well. Have your lender or broker explain all costs, and ask that some be either waived or reduced. Remember – all things are negotiable.
What To Do Next
Your dream of home ownership, getting cash, or using your home's equity might just be an application away. Simply fill out our short form and get multiple quotes from lenders near you!