Loans – Getting Started & Next Steps
Jul 3, 2018 // By:admin // No Comment
Getting to Know the Types of Mortgage Lenders
Owning a home takes a lot of research effort at the owner’s end, especially when it involves taking time to look for the right financing package from a reliable mortgage lender. It would be much easier if your research endeavor is to learn what are these types of mortgage lenders and the lending strategies that they offer.
Mortgage bankers are recognized generally as the ones to approach to for first time home buyers as they have the experience, being their mainstream job to promote mortgage loans especially to housing programs, that are collaborated by the state or local government, sold at the current market rate and at low interest, fixed rate. One of the observations found in mortgage banks is that due to its economic capacity to be able to finance mortgage loans, they are confronted with so many loan applications which take time to be approved as they are strict with the loan requirements. Sometimes, in cases where loan applications are disapproved, mortgage banks will courteously provide referral information to where you can seek applications in other lending institutions.
Another type of mortgage lender is called a portfolio lender or better known as a savings and loans lending institution. While it is much faster to get a mortgage loan from a portfolio lender, however, having a good track record of your savings and income capacity are salient for them to qualify you for a loan. Since portfolio lenders do not provide fixed rates, their loans are not cut-throat rates as that from mortgage bankers. Just in case your house loan does not pull through in any of the mentioned lenders, there are also institutions that perform as mortgage and savings and loans at the same time.
Because, in reality, most house loans are not easily obtained, this is where the networking skill and expertise of a mortgage broker company come in, as its job is into regular negotiations between wholesale lenders and loan officers. The edge of mortgage brokers is that due to their networking skill and experience on house loan applications, they can easily advise an applicant where to submit the loan and have a faster approval, either to a portfolio lender or mortgage banker, and, at the same time, any disapproved loan can be remedied by them by simply re-packaging the loan application and submitting it to another lending company.
Because of so many lagged factors in getting a loan, many big real estate companies, and sometimes in collaboration with builders, have opened their own mortgage lending firms, as well, to cater to the needs of their client, which translates to allowing people to own a home on a faster time table, but with the accompanying scenario that the set-up is totally controlled by the real estate company with respect to the loan rates. Caution is the best advice when entering into these kinds of offer and weigh everything carefully so as not to be entangled into a bad loan.