There are literally thousands of mortgage lenders, and each one has several different loan stipulations and contracts. There are lenders who only cater to the most creditworthy (and offer the best rates), and there are lenders who lend 50% of a property’s value (offered at high rates). Basically, there are lenders for everyone, but why settle for a lender who gives you lousy rates? You’ll only do yourself a disservice if you settle, so it’s important to get the best loan you can.
Try this mortgage calculator to get an idea of what you'll be paying in interest based on the length of your mortgage.
The best place to go is the bank—banks love to lend people money. They want to earn more customers and benefit from the interest rates that loans accrue. But sometimes, certain banks will not have a program that fits your needs, or you might not place within the parameters of their lending ability. Or worse: Some banks might try to tie you into a mortgage loan that doesn’t fit your needs.
But worry not. In this day and age there's more access to information than there's ever been. With the Internet you can search for a loan online and read the details of what each bank and lender offers on their websites. You can also scan the real estate section in the local newspaper for the rates offered by other regional banks or lenders. Give them an initial phone call, then setup a meeting if you feel like this is someone you want to work with. It doesn't cost any money to have a meeting. Just go into the meeting saying you're trying to gather information. Plus, face to face meetings are good to see if this is someone you want to work with and or have a future relationship with for other deals.
To simplifiy things, you can often get a loan via your own bank, from Well Fargo to Bank of America, most banks also have a mortgage business. There are special discounts for first time home buyers and various mortgage products that they'd be happy to help you with since they want your business.
By doing your own legwork you can get a feel for what is out there, and also have a clearer understanding of how everything works. There's no need to rush, start doing your legwork early and ask a lot of questions.
Extra: Secure your investments with payday loans to help manage debt.
Read more...Going with a Broker
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