If it is your first home purchase, your foremost concern is where to apply for a house loan or which mortgage lender will be suitable to assist your need to purchase a house. Part of your research must concentrate on understanding the various types of mortgage lenders and how they operate.
Mortgage bankers are recognized generally as the ones to approach to for first time home buyers as they have the experience, being their mainstream job to promote mortgage loans especially to housing programs, that are collaborated by the state or local government, sold at the current market rate and at low interest, fixed rate. Mortgage banks are big institutions and this means that there are numerous mortgage applications pending for approval and, therefore, getting your loan approved may take a while. In instances when your loan is not approved, most mortgage banks will allow their loan officers to broke your application to another lending institution.
Another type of mortgage lender is called a portfolio lender or better known as a savings and loans lending institution. While mortgage banks have a more standard loan guidelines, the portfolio lenders are more concentrated on the applicant’s savings history and income capability. Portfolio lenders offer adjustable rate loans and these are slightly higher than fixed rates, therefore, their offers are not as competitive as mortgage bankers. Just in case your house loan does not pull through in any of the mentioned lenders, there are also institutions that perform as mortgage and savings and loans at the same time.
Oftentimes, the best way to get a house loan fast is through a mortgage broker for a fee as these persons know very well this industry and, with that, they can easily shop for the best rate available from so-called wholesale lenders and they also know a lot of loan officers from the different institutions. The advantages of mortgage brokers are that they know where you can submit for a loan and advise you to apply, either to a portfolio lender or mortgage bank, based on your income and financial status, and, at the same time, if your loan application is disapproved, they can re-package the loan and submit it to another lending institution.
A recent trend, nowadays, is for real estate companies, including builders, to own their own mortgage company, which may be favorable for first-time homeowners but the business arrangements here is rather controlled by the real estate company and, thus, expect greater profit from them. It is in the interest of loan applicants to be cautious into entering any kinds of offers and that it would be good to study each one.