Places to Get Your Mortgage Loan : From Brokers to bankers to Credit Unions

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Places to Get Your Mortgage Loan : From Brokers to bankers to Credit Unions

There are plenty of options to choose from when you begin your mortgage loan search – and no one place is necessarily better than the other. It simply depends on your individual needs and the type of property you are planning to purchase.

With that in mind, let’s look at several different options for getting your mortgage loan:

Places to Get Your Mortgage Loan

#1 – FROM A MORTGAGE BROKER

A good one-fourth or so of all the real estate loans granted in America come from mortgage brokers. That percentage used to be around 50% back in 2006, but apparently fewer people have learned to turn to this type of middleman who brings lenders and borrowers together. Sometimes a broker or banker, not all bankers are mortgage brokers.

The advantage that mortgage brokers have is that they work with a variety of lenders, the number of which can run well into the hundreds. The more contacts that broker has, the more potential options for loan choices you may have with that particular broker, but it helps to ask and shop around.

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The fees can be paid by either both parties, or the selling or buying party individually. To see the term at “par” means that the buyer won’t pay the fee.

#2 – THE COMMERCIAL MORTGAGE BANKERS THAT WORK FOR A BANK

As the name implies, commercial mortgage bankers provide bank loans, even though they might represent multiple banks. Either way, the money for the loans comes from the bank.

The fees with these types of mortgage loans are usually determined by the bank, with little wiggle room. The variety of loans you’ll find are generally limited to what the bank offers, and the banker might not be registered or licensed.

#3 –WELL-KNOWN COMMERCIAL BANKS

These are the types of banks that populate many cities and are household names, like Wells Fargo or Citigroup or Bank of America. Even though their main line of business isn’t providing homebuyers with new mortgage loans, the banks can compete very well in terms of interest rates.

They also may be able to offer you some kind of a special incentive if you are already a customer. For example, if you already have a long term checking and/or savings account at Chase, you might be able to get a deal on a mortgage loan through them as well.

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#4 – S & L ASSOCIATIONS

Most people know the term “S & L” stands for “savings and loans” only due to the S & L crisis from the 1980s. They are institutions that take money for customer deposits that arrive in savings and money market accounts. Then the savings and loan places pay interest on the accounts.

In case of fears of another S&L crisis happening, President Bush signed FIRREA act into law so that the U.S. Treasury could regulate these institutions.

Unlike banks or other places, the main source of business for S & L institutions is from granting real estate loans. While they don’t provide the monies for commercial purposes, they do lend out funds in the case of a construction loan, to purchase a home or to make home improvements – and it might be easier to get a loan from an S & L than from a commercial bank.

#5 – CREDIT UNIONS

Credit unions can enjoy advantageous stances because they don’t have to pay federal taxes. I remember that the Christian elementary school I attended from kindergarten through 8th grade had a credit union in the basement, mostly frequent by the teachers and the community. A married couple I know does most of their primary banking via a credit union.
To use a credit union, you’ve got to be approved based on their specific qualifications in order to become a member. It might be worth the hassle to find out if you qualify, because the interest rates and terms offered by some credit unions can becompetitive – and their mortgage loans usually aren’t sold on the secondary market.

#6 – A RICH PERSON

No, this isn’t a joke. It’s a reality. Any person with enough money at their disposal can make a real estate loan to another person; they just need to comply with federal regulations about interest rates, repayment terms and the documentation required.

Even though appraisals and title policies might not be required in the case of a private individual providing a mortgage, it’s still a smart thing to acquireboth an appraisal and title protection.This type of financing works best on properties that are free and clear.

#7 – BROKERAGE FIRMS AND INTERNET LENDING WEBSITES

Since my husband works for Charles Schwab, that’s the firm we ended up using to fund our mortgage loan as well. If you use a brokerage firm for your IRA or stock trading account, you might want to check out their mortgage loan offerings as well.
If you’re savvy about navigating the online waters, you might want to check out a reputable Internet lender that can offer you the best deal that your great FICO scorescan buy. Make sure to use a secure site that comes with lots of positive feedback from homebuyers who’ve used them to secure their own mortgage loans.

Tag : mortgage loan , mortgage loans , home mortgage loan

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Places to Get Your Mortgage Loan : From Brokers to bankers to Credit Unions
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