It used to be that when people were considering the purchase of a home, they automatically turned to their banker. Now, with all the talk about the lending crunch, are you wondering whether you should go to a mortgage broker rather than a mortgage banker?
Each option has its benefits, depending on your situation.
A good place to start looking for the best mortgage rates is the real estate section of your local paper. That will give you a benchmark of what local banks are offering.
If you have a good relationship with your bank, and particularly if it is a local bank rather than a national bank, you may want to approach your banker first if their rates are competitive. While they are limited to offering only mortgage programs available through their bank, they will know your banking history, which could facilitate approval for a mortgage.
If you don't have a particularly strong relationship with a bank, or your credit history is less than stellar, a mortgage broker may be the way to go because a broker has relationships with a number of lending institutions and can match you with a program that will best suit your needs. The broker facilitates the transaction in the same way a bank does, but simply has access to a pool of lenders.
When you decide to go for a mortgage, it's a good idea to talk to friends or family members who have recently gotten a mortgage. Your realtor may also be able to guide you toward or away from certain options.
Whether you decide to go with a banker or a broker, be sure you're working with a reputable firm. The Office of the Commissioner of Banks licenses and regulates the business activities of mortgage lenders and mortgage brokers in North Carolina. There you can confirm that they are in good professional standing by entering their license number. You may also want to check with your local Better Business Bureau to make sure there are no complaints filed against them.
Whichever way you choose to go, it can be an exciting but stressful time buying a home, so it is important to feel comfortable with the company and people you are dealing with.
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