First off I am a Real Estate Broker I'll help you FIND a home, and I work with a team of Mortgage Brokers, Local Banks, and Local Credit Unions who have gathered up all the programs available to the open market. Believe it or not? There is a program and plan for almost anyone and everyone. If you want to own your own home it is possible! Look at what you are paying in rent already. What can you afford to Buy with the amount you already are paying for Rent?
You can Own. Whether you have unsavory credit, or average credit, whether you have any down payment or haven't anything to put down. Mortgage Rate have gone up and will only go up from here, but for the first time in American History it is now Cheaper to OWN than it is to RENT.
Property is widely understood to be one of the most secure and financially rewarding areas to invest. The only difficulty is that raising the capital to purchase a property outright is something that most of us won't be able to achieve during our lifetime. That's why we turn to money lenders such as banks and credit unions for assistance. With so many different lenders and loan packages out there, it helps to have some expert knowledge at hand, and that's where a specialist mortgage broker can really help. With their expert knowledge and industry connections, a mortgage broker can secure the right loan to suit your specific needs.
Choosing the right mortgage broker
So, we know that a mortgage broker can help us choose the right home loan, but what about choosing the right mortgage broker? While it's true that mortgage brokers are traditionally paid by the lender, rather than the borrower, it's important that your broker is finding the loan to best suit YOUR needs, not just the first offer that's going to line their pockets. So do some shopping around to make sure you select a broker that's looking out for your best interests.
Which lender should I go with?
The reason why mortgage brokers are so useful is because they can provide expert opinion and industry connections that most people are not generally privy to. Having access to this information puts the broker in an excellent position to find the loan that will best suit the needs of their clients. However, that's not to say you shouldn't be prepared with a little knowledge of your own, and understanding the different kinds of lenders who are available will allow you and your mortgage broker to make the best decision in relation to your financial situation.
Borrowing from the bank is one of the more popular ways to secure a mortgage, mainly due to the security a bank can offer. For most people, by the time they become interested in acquiring a home loan, dealing with the bank is already a very familiar process, they have built up a level of trust towards their bank, and they feel safe borrowing from them. Often however, this sense of trust can be misleading, and often banks will not be able to offer the lowest available interest rates. Coupled with a lengthy (and often rigorous) application process, you may wish to look elsewhere.
A credit union is a cooperative financial institution that is operated by its owners in order to make a profit by providing credit at highly competitive rates. The clear advantage in dealing with an institution like this is the potential to save thousands of dollars during the duration of the loan. What's less appealing about these lenders is that their contracts will usually include a caveat that allows them to recall your loan in case they face financial crisis themselves. For this reason, borrowing from a credit union is considered far riskier than dealing with the bank.
Bad credit lenders
As the name suggests, bad credit lenders specialize in financing people who suffer from bad credit. Although this may sound like a very generous provision on their part, they do so only for an slightly higher return, meaning a little higher interest rates. For some people, bad credit lenders are their only option when it comes to securing a loan. However, if at all possible, these lenders should be avoided in favor of something less financially straining.
At the end of the day, the type of lender you and your broker decide to go with needs to be the one that best suits your purposes. If you don't mind taking a risk, borrowing from a credit union could save you a fortune. On the other hand, the bank is always a good bet when it comes to playing it safe. The best advice we can give is to make sure you discuss everything with your mortgage broker in detail, and remember, a mortgage broker might be paid by the lender, but they work for you.
"Working with eXp Realty was a pleasure. When we started, we had no idea what we wanted, but our buyer agent helps us figure out the pros and cons of all our options. Our agent went the extra mile willing to put in the extra effort to answer our questions, to make sure we were happy with our decisions, and educated about the market and local area.