Shopping For A Loan - Step 2 of 3 on Easy Steps To Getting A Mortgage

April 8, 2007

When you are ready to shop for a loan you have two basic types of mortgage stores to shop.  Direct lenders and mortgage brokers.  Direct lenders have money to lend.  They make the final decision on your application.  Brokers are intermediaries who, like you, have many lenders from which to choose.  Lenders have a limited number of in-house loans available.  Brokers can shop many lenders for each lenders’ store of loans.  If you have special financing needs and can’t find a lender to suit them an experienced broker may be able to ferret out the loan you need.  Mortgage brokers, however, are paid with a slice of the amount you borrow, some more than others – some less.  Internet brokers today perhaps received the smallest cut, sometimes none at all, and can prove to be a real bargain. Your real estate agent probably knows of a good lender.  Along with shopping the source, you’ll also have to shop loan costs, including the interest rate, broker fees, points (each point is one percent of the amount you borrow), prepayment penalties, the loan term, application fees, credit report fee, appraisal and a host of others.

For more information and to get started give me a call or drop me an email - I will be happy to assist you.  Step 3 is coming next.

Posted in All Things San Diego, Helpful Hints, Lending, Local Business, Real Estate, Things of Interest