How to Get a Mortgage

There is an extensive majority of buyers who finance their home purchases in this modern, urbanized era. If you are planning to buy a house, then you should also shop around for a mortgage that can offer the best rates and terms that can save you money in the long run.

But very often, the situation is not quite as simple as it sounds, and it is not just a matter of finding a mortgage lender, but rather the tiring sorting that each buyer has to come across; that is to go through throngs of numerous lenders, mortgage brokers, and several other options that may consider your loan application.

There is not a specific type of lender that would suit every buyer, but it would depend on each buyer’s unique case, their requirements and their choice of property, along with managing rates and terms of the lender and where they stand in comparison to others. Below we will give you a bit of guidance to assist you in choosing a skilled lender.

Who Should I Choose for a Mortgage?

Just because your loan application has been accepted, this does not mean you will get the best rate and terms with the lender. It is best to do your research and call on various mortgage lenders such as mortgage brokers, commercial banks, mortgage bankers, and credit unions and see who will offer you the best loan package.

How to Get a Mortgage

Loan with Mortgage Brokers

The job of a mortgage broker is to bring together all the lenders and borrowers. At times they could be mortgage bankers, but not always. The core benefit of considering a mortgage broker is that they work with hundreds of lenders – that means so many lenders to pick the right one from. However, the loan products and packages vary as according to each broker.

Loan with Commercial Banks

There are several commercial banks that provide mortgages to buyers, like Wells Fargo and Bank of America which are two choices to turn to. The advantage of obtaining a mortgage through a bank is that the rates are usually competitive, and moreover, if you have created your official bank account, then discounts and incentives on your mortgage will be guaranteed.

Loan with Commercial Mortgage Banker

Commercial mortgage bankers usually represent more than a single bank and are employed in financial institutions. Despite this fact, the loans that they make are always funded by the bank itself. You should keep this in your knowledge, but a drawback that comes with this option is that the fees are non-negotiable and the loan products you choose are limited to the bank requirements.

Credit Unions and Loans

Credit unions are recognized for their tax advantages that other lending institutions do not provide. A credit union is typically created by a group of individuals with a common purpose or interest; as in a religious community or state government employees. Although, it could be a bit demanding, since you, as a buyer, need to meet specific qualifications to become a member and obtain mortgage.

Online Lender or Stock Brokerage for Loan

In case you were not aware of the fact that the business that manages your online savings account and IRA, also can make a mortgage loan. Online lenders work proficiently with borrowers, who are impeccably aware of what they want.

Private Individual for Loan

In case you have exhausted your mortgage options, a private individual can provide you with enough cash for your loan. One must abide by terms and conditions of interest rates, charges and fees, and lawfully provide disclosure. Appraisal and title policy should be considered for protection.

If you are interested in buying a house or property and need assistance on how to get a loan to start your home search, contact our professional real estate agents today!

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