Mortgage banks, real estate agents, online lenders and mortgage brokers are all great sources of obtaining a mortgage. No single source of mortgage provides the perfect product for all kinds of shoppers, but knowing the pros and cons of all of them will help you in choosing the lender that is right for you. http://www.awmlending.com/
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3 Steps to Obtain a Mortgage
If you are seriously planning to buy a
home anytime soon, then the first
thing that should be on your bucket
list is to get your credit ratings in
order. Once you clean up your credit
report, identify, pay off and close
most of your credit cards, the next
thing you need to do is shop for a
mortgage. Following are the
preliminary steps that you need to
follow in order to obtain a mortgage:
Getting pre-qualified is the first step of the mortgage
process. In order to get pre qualified, you meet a lender and
provide him information about your income, assets and debts.
Based on that information, the lender will provide you with a
rough estimate of how much money you can borrow.
The entire pre-qualification process is informal as the lender does not verify the
information that you provide and doesn’t even charge you a fee. Neither does he
formally agrees to provide the loan amount, you get pre-qualified for. However,
while the pre-qualification is not a guarantee of your loan getting approved, it
does provide you with a general idea of the amount lenders will agree to give you
as a mortgage. This allows you to look for the properties that fall within your
The pre-approval process is more or less the same as the pre-
qualification process. The only difference being that pre-
approval is more formal. The lender officially confirms your
ability to take a mortgage by checking your credit rating and
verifying your financial and employment information.
He also charges a fee for pre-approving you and provides you with a written
commitment that you are eligible to borrow a certain amount of money as
mortgage. Having a pre-approval strengthens your ability to buy a home as
sellers give preference to the offers made by pre-approved buyers. This is simply
because of the fact that pre-approved buyers have proved that they can actually
afford to purchase the house.
Mortgage banks, real estate agents, online lenders and
mortgage brokers are all great sources of obtaining a
mortgage. No single source of mortgage provides the perfect
product for all kinds of shoppers, but knowing the pros and
cons of all of them will help you in choosing the lender that is
right for you.
Mortgage Brokers: Brokers help more
people obtain mortgage loans than any
other source. The benefits of hiring a broker
are that they have access to large number
of lenders and they can shop the
marketplace and compare the deals offered
by various lenders, on behalf of the client.
They can be extremely useful if you are looking for an unconventional type of loan or
have damaged credit. On the other hand, the downside of working with brokers is
that their goals are different than yours and they can sometimes get you a bad deal to
increase the amount of their commission. Also, brokers don’t work for free and
sometimes the fee charged by them can be a bit high.
Banks are the traditional source of
mortgage funding. If your local bank, where
you have your savings and salary accounts,
is offering you a good interest rate and
alluring terms, then there is no reason to
not choose them.
However, if it is not offering both, then there are many other banks in town whom
you can approach. The only negative aspect of working with the banks is that they
offer a limited number of mortgage options and they are generally not that flexible
when it comes to fees.
Real estate agents other banks in town whom
Real estate agents often introduce their
clients to quality private lenders. As they are
in the business of selling houses, it is natural
that the agents know a lot of mortgage
M other banks in town whom any homeowners prefer to work with a
lender suggested by their real estate agent
instead of shopping for loans themselves.
However, working with a private lender,
suggested by your agent, may also offer only a
limited number of mortgage programs.
Shopping for mortgages online other banks in town whom
has gained immense popularity
in the past few years, due to the
plethora of benefits that it offers.
The major benefits of shopping
for mortgages online are that it
is quick, convenient and allows
you to contact and compare the
options provided by multiple
You don’t have to leave the comfort of your home and you can shop at any time of
the day. You are no longer bound by the business hours. Even if you eventually take
a loan from a brick and mortar establishment, the plethora of data gathered from
comparing vendors online will provide a wealth of information that will be crucial in
attaining good mortgage terms.