There are many mortgage lenders out there — banks, mortgage brokers, and e-lenders — willing to help you find a loan. It’s not because they think you’ll be happy living in your new community or that it’s the perfect home for you… it’s because they make money lending you money. It’s called interest (and fees). That’s why it’s in your best interest to get the lowest rate possible, and the best terms, which are usually not one and the same.
At Hyatt Realty we have helped 100’s of retirees find the perfect mortgage lender to meet their needs.
Give us a call at 352-267-7475
Know Your Lenders
Before you get the low-down on amortization schedules or learn about newfangled 50-year notes, it helps to understand your choices when it comes to types of lenders. Most fall into one of four categories:
Internet lending resources
Banks and savings and loans
1. Internet Lending Resources
Internet lending resources have a wide presence on the Web and not all actually lend money, although it might appear that way. They consist of direct lenders, lending marketplaces, and content sites.
2. Mortgage Brokers
Mortgage brokers are like a matchmaking service since they match you, the borrower, with a lender. They review your personal financial information and look over an array of lenders to try to fit you with one who will give you the best rate and terms. Mortgage brokers usually make their money from the lender since they are bringing a client (you) to them, but fees may also be charged to the client. The advantage is choice since the broker will have lots of suitors to match you with; the disadvantage is that once the match is made, they’re out of the picture and you continue the dance with the lender you were matched with.
3. Mortgage Bankers
Mortgage bankers (also called mortgage companies) may or may not be affiliated with a bank and their specialty is in providing mortgages. Period. They originate mortgage loans, which means they prepare loan documents, perform credit checks, inspect and appraise the property. Once they issue you a loan, it is then sold to a secondary lender, such as Fannie Mae and Freddie Mac. This is very common. A secondary lender is in the business of buying existing mortgages from the primary lender to keep the pool of mortgage money moving. This creates fierce competition on the primary level, which in turn keeps rates down for consumers.
4. Banks and Savings & Loans
Banks and savings & loans are usually “part of the neighborhood” and make their money from the funds generated from their customers who have checking and savings accounts at their bank or from other services they offer. They issue mortgage loans and usually keep control of the loan, but sometimes sell it off to secondary lenders.
Other types of lenders include finance companies and credit unions. Whichever lender you use, the bottom line is to do your homework and don’t be afraid to ask questions.
The two big purchasers on the secondary lending market in the U.S. with the homespun names, Fannie Mae and Freddie Mac, both have free content and tools about lending and home ownership. Visit www.fanniemae.com and www.freddiemac.com.
Both the Federal Housing Administration and the Veterans Administration have several loan programs designed to encourage home ownership.
Want More Information?
Call Hyatt Realty at 352-267-7475