Choosing Mortgage Lenders

Choosing Mortgage Lenders



Choosing Mortgage Lenders
There are many types of​ mortgage lenders and each one focuses on​ a​ special slice of​ the​ market.
Seller-financed
The seller of​ the​ property provides financing to​ a​ buyer .​
This type of​ arrangement is​ highly risky .​
Most sellers profit from borrowers twice: first,​ from the​ outright sale of​ the​ property,​ and second,​ from the​ interest of​ the​ borrowed money.
Savings and Loans
These mortgage lenders use the​ savings of​ private investors to​ provide mortgages .​
They are one of​ the​ largest mortgage providers in​ the​ country.
Mortgage Bankers
Here's a​ rule of​ thumb in​ dealing with mortgage bankers: the​ bigger the​ bank,​ the​ better the​ rates they can offer .​
When dealing with mortgage bankers,​ you​ must be cognizant of​ the​ fact that they will control the​ loan throughout the​ whole process,​ from underwriting to​ servicing and even to​ the​ selling on​ the​ secondary market.
Mortgage Brokers
Brokers are the​ ones who sell loans for lenders,​ such as​ mortgage bankers .​
In the​ loan distribution network,​ they are at​ the​ storefront .​
It is​ possible to​ find a​ good mortgage broker through friends,​ co-workers,​ and online searches.
Credit Unions
These are owned by members and it​ is​ precisely for this reason that they give good rates and services .​
They operate in​ a​ similar manner as​ mortgage bankers.
Below are important things to​ note when shopping for mortgage lenders.
Finding Mortgage Lenders
It's easy to​ locate mortgage lenders .​
If you​ know a​ real estate agent,​ ask this person to​ recommend a​ lender to​ you​ .​
If you​ know someone who purchased a​ home very recently,​ ask him or​ her for a​ referral .​
Finally,​ if​ you​ have a​ telephone and a​ phone directory,​ then turn to​ the​ yellow pages .​
Couple this with looking out for advertisements in​ print and broadcast media.
It is​ the​ Department of​ Commerce that issues licenses to​ mortgage lenders.
Reducing the​ Names of​ Your List
To weed out the​ names on​ your list,​ call the​ Department of​ Commerce or​ check their website .​
Go to​ the​ portion marked Consumer Info & Services and click on​ Enforcement Actions .​
You will then find a​ listing of​ any action taken against mortgage lenders.
The Department of​ Commerce updates its list of​ mortgage lenders with complains and violations .​
It has the​ authority to​ publicly reprimand a​ mortgage lender for failing to​ follow rules .​
Should another incident requiring government intervention occur,​ the​ department may choose to​ revoke or​ suspend the​ mortgage originator's.
Finding the​ Best Rates
Comparative mortgage charts are printed in​ local newspapers' real estate sections .​
This is​ a​ good place to​ look for a​ mortgage lender .​
Call the​ mortgage lenders who interest you​ and ask the​ following questions:
1 .​
Are these the​ best rate and terms that I​ can qualify for?
2 .​
Do I​ qualify for a​ better loan product that you​ are not offering to​ me?
3 .​
Will I​ do better with another mortgage lender?
Take your time to​ shop around for mortgage lenders .​
Finding a​ mortgage lender is​ as​ crucial as​ finding a​ home itself .​
After all,​ borrowers' relationships with mortgage lenders range between 15 to​ 30 years .​
For the​ relationship to​ last that long,​ it​ must be a​ match made in​ heaven.




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