Is a Direct Mortgage Lender Right for You?
When purchasing a new property you can either use a mortgage broker or direct lender. A broker works with multiple lenders and is able to compare rates, turn times, service, etc among lenders. A direct lender will work directly with you. Both utilize loan officers who could be your primary point of contact, answer your questions, help you through the application process, etc. A direct lender can also be a wholesale lender and thus work directly with borrowers, or work through independent brokers.
Realtors may direct a first time home buyer towards a mortgage broker with whom they have a working history. This does not mean that the buyer is precluded from contacting a direct mortgage funding source on their own. The buyer has the ability to work directly with a lender. You can walk right in to a financial institution and make an application for a first mortgage or do so online. Using a search engine on the Internet can help you find a direct lender. Regardless of the realtor's recommendation, you can approach a direct lender on your own.
Direct mortgages are available not only for purchase loans, but also for home refinancing. Many people who purchased property during a period when interest rates were much higher will look to refinance their note. With interest rates as low as they are now, this provides an opportunity to decrease the monthly note payments. Refinancing could be an especially attractive option for people with an ARM (short for adjustable rate mortgage) because they can lock in a great rate for the life of a loan and avoid the risk of rates going up again. Just as with a new mortgage application, going to a direct lending is a viable alternative for refinancing.
Another option for utilizing a direct mortgage lender is to obtain a loan collateralizing the equity of your current property. For example, if the current fair market value of your home is much higher than the principal balance of your mortgage, that equity can be used as the basis for a loan. These types of loans are often used for major home repairs or renovations. These loans might be called a home equity loan or home equity line of credit (HELOC). Financial institutions making these types of collateralized loans will have a set of criteria to test the applicant's ability to repay the note.
It's up to you to decide whether to use a broker or a direct mortgage lender. Either way, there is a similar application form commonly known as a 1003. Remember, you can walk into a local bank branch, fill out your home loan application online, or work with a broker - the option is yours. - 16931
Realtors may direct a first time home buyer towards a mortgage broker with whom they have a working history. This does not mean that the buyer is precluded from contacting a direct mortgage funding source on their own. The buyer has the ability to work directly with a lender. You can walk right in to a financial institution and make an application for a first mortgage or do so online. Using a search engine on the Internet can help you find a direct lender. Regardless of the realtor's recommendation, you can approach a direct lender on your own.
Direct mortgages are available not only for purchase loans, but also for home refinancing. Many people who purchased property during a period when interest rates were much higher will look to refinance their note. With interest rates as low as they are now, this provides an opportunity to decrease the monthly note payments. Refinancing could be an especially attractive option for people with an ARM (short for adjustable rate mortgage) because they can lock in a great rate for the life of a loan and avoid the risk of rates going up again. Just as with a new mortgage application, going to a direct lending is a viable alternative for refinancing.
Another option for utilizing a direct mortgage lender is to obtain a loan collateralizing the equity of your current property. For example, if the current fair market value of your home is much higher than the principal balance of your mortgage, that equity can be used as the basis for a loan. These types of loans are often used for major home repairs or renovations. These loans might be called a home equity loan or home equity line of credit (HELOC). Financial institutions making these types of collateralized loans will have a set of criteria to test the applicant's ability to repay the note.
It's up to you to decide whether to use a broker or a direct mortgage lender. Either way, there is a similar application form commonly known as a 1003. Remember, you can walk into a local bank branch, fill out your home loan application online, or work with a broker - the option is yours. - 16931
About the Author:
When you purchase or refinance your next home, would you like to obtain a direct mortgage? Then work with us -- we're a direct lender.
posted by Edgar at
01:40
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