Article of Interest
Decided To Buy Home, Your First Step Is To Find The Right Lender
Options available to you are banks, mortgage brokers, internet lenders and even home builders/developers that all offer various types of financing. It is important that you choose the lender that is the most suitable for your situation. You need to understand that there are pros and cons with any of the options.
If you deal with a bank and have already established a client relationship with them then you may be able to do better than their posted rates. Posted rates are not always the best rates so you want to ask, if they don't offer you something better than posted.
A mortgage broker, which is another option, will shop around the different lending institutions and try to find the best rates. They get paid by the lender and they build relationships with the lender based on volumes of business they send to them.
Lenders on the internet offer competitive rates but you have no personal communication and you are the one that must do all the work and research.
Builders and developers will sometimes build a relationship with a lender to get a better than posted rate or offer some sort of kick back.