Mortgage Lenders - Second Mortgages
Choosing Mortgage Lenders
In addition to finding the best mortgage loan, finding a mortgage
lender that you trust and can work with is important. Given that
the residential mortgage
loan market is quite competitive, there won’t be a lack
of potential mortgage lenders. The Internet offers a quick and
convenient way to locate a mortgage lender. To adequately compare
residential mortgages, it’s recommended to shop with three
mortgage lenders. Finding the best mortgage lenders will require
a bit more effort. Here’s what to look for:
1. Referrals from family and friends: If a friend
or a family member recommends a mortgage lender, it means that
they were given good service and competitive pricing.
2. Specialty: Some mortgage lenders specialize
in certain residential home loans. You basically go to the house
loan lender that has the product you need.
3. Honesty and Competence: Does the mortgage
lender do as they say? Do they deliver the details as they claim
they would? A good test of their honesty is the Good Faith Estimate
(GFE) document that lists the mortgage loan processing fees they
charge. If a mortgage lender matches the GFE, it means they probably
won’t hit you with additional fees.
Types Of Mortgage Lenders
These are the mortgage lenders you can go to for your home
Mortgage Banker: A mortgage banker uses their
funds to underwrite your residential mortgage loan. Once your
home loan is closed, the same financial institution probably will
service your account, collect payments and make sure your real
estate taxes are being paid. They might sell residential loan
on to the secondary market to free up their funds and re-lend
the money. Mortgage bankers make their money from your loan on
the interest rate spreads and the fees that they charge you.
Savings and Loans (S & L): S & Ls function
in the same way as mortgage bankers. They provide more than half
the loans in the United States.
Credit Union: A Credit Union also underwrites
the loans they provide to their borrowers. As a member, you probably
have access to lower interest rates. Many companies run their
own credit union so check out your workplace and open an account.
Mortgage Company: A mortgage company underwrites
their own mortgages. Unlike banks, credit unions and savings and
loans, they don’t offer other products such as term deposits
Mortgage Brokers: A mortgage broker is strictly
the middleman; they don’t underwrite house mortgage loans.
A mortgage broker works with a variety of mortgage lenders who
purchases loans on the secondary market. Through these lenders,
the mortgage brokers have access to funds and a variety of home
loan mortgages that can meet your needs.
Builder and Developers: This arrangement allows
for the purchase and financing of a home to take place in one
step. The builders and developers usually have a business relationship
with one of the lending institutions to make this possible.