Question – Should I talk to a Lender?
Answer – There are many questions about speaking to a Lender, whether you should speak to a lender before searching for a home, speaking with a lender after you have already found the home of your dreams and what type of lender should I speak with?
The benefits of speaking with a lender BEFORE searching for a home are huge! You not only know that you can get the loan to buy your home, you can also receive realistic expectations of what you need to do in order to get your loan and not to mention what your monthly payment will look like! Knowing that you are approved for your loan will also help bring more substance to your offer when you try to buy the home because the seller will know that you can get the loan to pay for it.
The risk you might take when shopping for a home without speaking to a lender first could potentially bring bad news and heartache. It will also make it much more difficult to get an offer accepted if you have not been approved for financing. Perhaps one of the biggest problems you could come across is that you find the home you want to buy, BUT it turns out that the home you LOVE is more than your monthly budget will allow!
The term “Lender” is a blanket term used in the Real Estate Industry that encompasses many type of areas of expertise. They will consist of a “Mortgage Banker” or “Direct Lender”– which is a professional that uses their own funds or borrowed funds to fund the sale. Then they could potentially sell the mortgage to an investor or keep it in their portfolio. Another common type is a “Mortgage Broker” – which is a professional who doesn’t represent one institution and is a middleman between you and the lender.
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