Which Type of Mortgage Lender Do You Use?With the recent flurry of activity in the Charlotte real estate market, we're seeing more and more buyer finding themselves in multiple-Offer situations. So, we thought we'd share with you some Charlotte home buyer tips - choosing the right lender for you in order to prepare your for your mortgage pre-approval. Obtaining your pre-approval allows you to present a stronger Offer, SOONER.
One of the most misunderstood aspects of Charlotte home loans is the different types of lending that is available to Charlotte home buyers. Most buyers mistakenly assume they have to obtain a home loan from their bank's local branch or from a traditional savings and loan.
There are several different types of lenders; here are the main types of mortgage lenders and how each of them function:
Mortgage bankers are loan originators. This means that this type of lender operates with the sole objective to sell the loan they create to another source. Even though they will sell the loan they must also have the ability to finance the loan in the first place and hold it until it is sold.
Mortgage bankers do not actually originate the loan for your Charlotte home; they simply prepare the paperwork to submit to multiple lending institutions in order get offers from these lending institutions, from which they will then present to you, to select the best option for you. Their offers may come from any of the other types of mortgage lenders. Many people believe that this type of loan is costly because of the additional work the brokers have to do to ‘shop’ for the loan for you. HOWEVER, they can oftentimes locate aggressive rates for you and the lender will sometimes even pay the brokers' fees, making the cost of the loan even less than that of other types of loans.
Banks and Savings & Loans
These are the most common traditional sources of mortgage loans. They use the backing of their depositors to fund mortgages. In turn, they use the money paid by borrowers to repay the depositors’ interest for allowing them to use the money as an investment.
Credit Unions operate in largely the same way a bank or savings and loan does by using money from a pool of depositors to finance investments in the form of mortgages and other types of loans. The difference is that most credit unions are operated out of a collective pool of closely associated people generally through a work place or professional organization.
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If you’d like help determining the best type of mortgage lender for your Charlotte home purchase, give me a call at (704) 491-3310 or email me today at SavvyBroker@me.com. I'm also happy to send your our list of preferred lenders.
©Debe Maxwell | Savvy + Company Real Estate | SavvyBroker@me.com | Charlotte Home Buyer Tips - Choosing the RIGHT Lender for YOU. Thanks to @Nevin Williams with First Priority Financial for sharing his expert mortgage knowledge with regards to mortgage brokers.