Finding the Right Mortgage Lender for YOU
If you are in the market for a new home, there are an ever changing number of lending options that exist for you as a purchaser. Here are some of the potential lenders you can choose from to get your mortgage, as well as some of the pros and cons for each choice. It can be smart to ask your Realtor which loan type might best work for you, and for some recommendations of good local lenders.
It is always smart to work with a lender who is local to the property you are purchasing. There is more accountability when the Lender is serving the community he/she is working within. They are generally more concerned about your satisfaction AND the Realtors satisfaction, as Lenders work hard to have a good reputation with the Realtor community. I know that if a Buyer is not already working with a Lender, we prefer them to work with someone we have positive experience with.
Mortgage Brokers- A huge number of real estate loans are made through mortgage brokers, and as they are essentially a middle-person between you and a lender, choosing a broker can save you time in shopping around for the best fit. Be sure to ask about the variety of products offered by a specific broker, as they will vary and are dependent on the broker's number of working relationships.
Banks- Commercial banks offer a wide variety of financial services, and mortgages are definitely one such option. Banks can usually offer competitive rates and are a safe mortgage option for most potential homeowners, but their choices are usually limited. If you already have an existing relationship with the bank you choose to deal with, you may qualify for certain discounts or incentives.
Savings & Loan Associations- Savings and Loan Associates do most of their business through mortgages, and their primary source of income is through making real estate loans. The process of applying through such an institution can be simpler than through a bank; however, you may not get the best rates or the protection that a more traditional lender can offer.
Credit Unions- These institutions are formed by a group of individuals with a common interest, and customers who meet all the qualifications for membership are eligible to obtain a loan. In many cases they offer very competitive rates and terms.
Private Individual- As long as all federal and state regulations regarding a real estate loan are covered, any individual can make such a loan as long as they have the appropriate funds. This can either be a great option or a disastrous financial choice, depending on the terms of the loan and the agreed interest rate. Seek out the advice of a financial advisor and attorney before signing any such document with an individual. Private money loans are generally are far less attractive than any other loan type. They generally want a substantial down, and their interest rate is higher. Buyer beware. Private money loans can be the only option to someone who has bad credit, or if lenders will not loan on the particular real estate (poor condition, mid remodel, etc...)
As Realtors, we are not involved in your financials, if we get to know your situation, we can help direct you to a few good local lenders that can make the process more enjoyable, and less stressful. I will generally ask a Buyer a series of questions so I can assist them in getting to the right lender. I don't ask income or expense questions, but my questions are more geared towards credit, timeframes, and down payment saved. I am also interested to get a feel for personality and I definitely want to know the purchasers experience level.
Are you considering a move to Jackson County Oregon. If so, contact Chris and Kim Knox. Both Principal Brokers and experienced Realtors. Husband and wife team, who are natives to the area. 541-899-7222.
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