When considering financing options, you will want to review many different things about the loans being offered to you. Home loans are available to consumers from thrift institutions which include commercial banks, credit unions, mortgage companies and mortgage brokers. A broker is different from other lenders because the broker does not lend you money directly. A broker will simply help you find a lender and secure the terms of your loan.
A Broker should have access to many lenders and should be able to offer you a wide selection of terms and loan products. They can help you shop for the best deal based on your circumstances. Brokers are not obligated to find you the best deal out there, so be sure to ask questions.
Brokers are paid a fee in addition to the lender’s origination fees. They set their own fees so make sure you ask how their fees are determined. Ask what their fees are because sometimes, they may be negotiable.
The interest rate is not the only thing that matters- all the terms of the loan do. You need to get a complete break down of what a given offer means to you on a monthly basis and how much money you will be spending over the life of the loan.
You should request quotes with a few different scenarios and compare the financial impact of each scenario before you determine the best loan to choose.
Even if you decide to work with a traditional lender, make sure to ask if a broker is involved. Many financial institutions act as brokers and lenders, so you will want to know if a broker is involved in any loan you’re offered.
Contact the Restivo Team for help on purchasing your new home as well as for information on some good lenders. We are here to help you.