Home Financing Financing Options Mortgage Lenders: "Basic Home Financing
Qualifying for a Loan
Before actually applying for a loan, talk to lenders about all your financing options. Keep in mind, the lender will tend to focus on the options they carry. This is why many people like to start with an established mortgage broker as they usually carry more types of loans. Besides helping you understand your options and the various trade-offs involved, the lender can pre-qualify you for one or more loans.
Points and Interest Rates
Many loans involve something called points. Points are nothing more than a fee for the loan that is expressed as a percentage of the loan amount. One point equals one percent. So if you take out a loan for $50,000 and the lender charges two points, the fee costs $1000. Points exist so the lender can pay for the loan set-up expenses, as well as, make a profit.
Mortgage Lenders
Mortgage brokers represent a number of money sources including regional and national banks, specialized lenders, insurance companies and even wealthy individuals. This diversity is their greatest strength. It means that they are likely to offer a wide number of options.
Banks are another very popular way to get loans. If you have a good personal relationship with this mortgage lender and the lender offers a wide variety of loans, this can be a great route to go. If you don't already have a strong relationship with your banker, yet you are confident about getting the loan, this can be a good opportunity to start up that relationship."
Qualifying for a Loan
Before actually applying for a loan, talk to lenders about all your financing options. Keep in mind, the lender will tend to focus on the options they carry. This is why many people like to start with an established mortgage broker as they usually carry more types of loans. Besides helping you understand your options and the various trade-offs involved, the lender can pre-qualify you for one or more loans.
Points and Interest Rates
Many loans involve something called points. Points are nothing more than a fee for the loan that is expressed as a percentage of the loan amount. One point equals one percent. So if you take out a loan for $50,000 and the lender charges two points, the fee costs $1000. Points exist so the lender can pay for the loan set-up expenses, as well as, make a profit.
Mortgage Lenders
Mortgage brokers represent a number of money sources including regional and national banks, specialized lenders, insurance companies and even wealthy individuals. This diversity is their greatest strength. It means that they are likely to offer a wide number of options.
Banks are another very popular way to get loans. If you have a good personal relationship with this mortgage lender and the lender offers a wide variety of loans, this can be a great route to go. If you don't already have a strong relationship with your banker, yet you are confident about getting the loan, this can be a good opportunity to start up that relationship."
