Finding relevant resources are a key component of researching, gathering information, and making the best decision based on your findings. When using this approach to find yourself a mortgage, you can ensure that you are getting a good rate based on what you are qualified for. Post mortgage crisis, it is more difficult to get qualified for a mortgage, but if you have equity and are qualified: it’s time to shop. There are three main sources of loans: banks, credit unions and brokers.
Credit Union mortgages are becoming increasingly competitive. According to the New York Times, “while their mortgage rates aren’t notably below the competition, some Credit Unions are aggressively pushing loans they say have lower fees or more flexible terms.” This would be a great place to start if you are looking for a niche type of loan to fit your needs. Credit Unions are usually local and also provide more of an opportunity for one-on-one contact with a representative. With trust being an issue these days for banks this also presents another benefit for using a credit union for a mortgage loan. Wall Street Journal author Jane J. Kim also states, “Rates on primary mortgages are usually about the same for credit union as for traditional banks, because the secondary market plays such a big role in mortgage rates and availability. Closing costs, however, are likely to be lower at credit unions than at banks.
Banks are another resource worthy of research for a competitive rate. Due to being regulated by state and federal agencies, banks are a trusted source for a mortgage. Each bank will have different guidelines for loan qualification and bank specific loans, but again, if you are qualified shop around to see if your bank has a loan that you are looking for. With the bigger banks being regulated and having more capital they usually process your loan faster. If speed is a factor for you, this may be of interest. There is also a benefit if you bank with your loan provider, in that if you have assets with the bank they may give you better terms; making this option one to consider depending on what you are looking for.
A mortgage broker is a middleman that can shop a plethora of lenders to find a loan that fits your needs.
There are many resources on-line to shop for rates from brokers who have access to all types of loan products. Click on mortgage rates to see what you are looking at in your area. With brokers, and due to the fact that they are using other banks to qualify you, it can take more time. If you have the time the time for processing this is a great way to find multiple loan products and get a variety of rates based on your personal situation. This option can also save time shopping for rates. One factor that you should be aware of is that there can be hidden costs when using a broker. So pay close attention before signing the loan documents.
Finding a mortgage loan can be a tedious process. As you can see there are certain benefits to each option. Figure out your needs and a rate and term that will put you on track for a payment you can afford and look around for the best product based on your specific needs. Happy hunting!