If you are looking to purchase a home, you may be concerned or curious about how you are going to finance it. Financing your home can be very confusing, so you want to make sure that you know what your doing or have the help and assistance of someone else who does. First you are going to have to decide if you want to go through a bank or a mortgage broker. There are advantages and disadvantages to both, so you are going to need to research into what both have to offer you.
By walking into a bank and choosing them as the lender for your home mortgage, you are going to be assigned a loan officer. This officer is going to explain to you the different mortgage options that are available. Once you have decided what will best suit your financial needs, the officer will help you fill out and file your loan application. Once the application is accepted, they will then help you through the process up through the final purchase. If you aren’t accepted, they may be able to help you apply for a different type of loan.
A mortgage broker will work differently. A broker’s job is to act somewhat like a recruiter. They search out people that are looking to acquire a home mortgage, evaluate their credit and also their income, and then try to match them with the best lenders. They can work with hundreds of different lenders, and they are given a certain amount of money from the lender for each person they send to the company that follows through with obtaining a mortgage.
Even though you can get a lower interest rate with a mortgage broker verses a local financial institution, you may not be able to sit down with them face to face. You may also end up working with a bank that could be all they way across the country. If you have a lower credit rating however you may be forced to go with a broker. Research all of your options before you make a decision and choose which works best for you.