Mortgages Brokers, Bankers & Credit Associations

Published by cravat | Filed under Buyer / Seller Tips, Miscellaneous, Real Estate, Shout Outs, Uncategorized

Majority of home buyers finance their home purchasing which only means that almost all home buyers will need to obtain a loan. Have you checked your lending choices? Or where you can get a property loan? The type of real estate lender is best?

Sadly, there is no specific answer because the best alternative for you actually depends on your current and personal situation, the preferred property that you want to buy and how the lender’s rates varies within the lending community. You can apply for a loan from different sources such as the following:

Mortgage Brokers

I think more than half of all the property loans made in the United States derives from mortgage brokers. Brokers are the middle-person who brings together lenders and borrowers. Brokers tie up with several lenders around two hundred or more. It is crucial to question about the different products being offered as this will differ from broker to broker. Your decisions are dependent on the broker’s number of working network.

·         Brokers Fee are paid by the buyer or lender or both.

·         Yield-spread premiums (YSP’s) are usually released at closing and paid by the lender

·         Brokers can also work with the buyer in replacement for finding the lowest interest rates and charges.

Mortgage Bankers

Mortgage bankers can be represented not only by one bank but with several ones because the loans they offer are bank loans funded by banks.  Remember that fees are generally not negotiable and are set by bank policy, Loan products are only limited to what the bank offers and banker may not be licensed.

Commercial Banks

There are several banks like Bank of America, Citigroup are a few good examples of well-known commercial banks. All these commercial banks offer several types of services. Besides, you probably have one commercial bank near or within your area. All these commercial banks has competitive bank rates, making mortgage loans are not their primary source and if you maintain either checking or savings account on one of these banks, they may offer discounts or incentives on your loan.

Saving and Loan Companies

This company usually accepts savings and loans deposit from clients into savings or money market accounts and pay corresponding interest on those accounts. The company’s primary source of business is providing property investment loan, this business does not create business or commercial loans but more on home improvements or constructions and getting your loan approved is much easier than going to any of the commercial bank.

Credit Associations

Institution such as this are usually under attack by competitors on lending because credit companies are exempted on federal taxes and has several taxable advantages compare to other several lending companies. They are developed by a group of individuals with the same interest such as religious union, state government and community education employees. Applicants must meet their requirements to be considered for membership, Interest rates and terms are attractive and competitive and does not put their mortgage loans on secondary market.

Private Individual

Any individual with cash in the bank can apply for a real estate loan to you as long they follow with several regulations regarding interest rates, charges and fees, and legally provide required disclosures.

The seller can use financing instruments such as land contract, trust deed or mortgage contract; Appraisal on title policy is not require but you should still get an appraisal and protection on your title. Owner financing works best on house that are clear because most likely it contains alienation clause with an existing mortgages.