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What are some pro's and con's of getting a home loan(first time) from a bank, versus a mortgage comp.or other |
What are some pro's and con's of getting a home loan(first time) from a bank, versus a mortgage comp.or other Banks can do loans with 0% down, just like mortgage brokers. I have found that closing costs are usually the biggest difference between a bank and mortgage broker. Mortgage brokers are usually paid on commission and make their money on certain fees that are included in the closing costs. Mortgage bankers and brokers adhere to the same set of guidelines and you will usually not find much difference in rate. To accurately compare the two, you should compare the Annual Percentage Rate (APR)that appears on the Truth in Lending Form. This form is a required disclosure that MUST be given when you apply for a loan. Unlike the interest rate on the money you borrow, the APR takes into consideration the fees you have to pay in order to borrow money. When you compare these rates, you will find who is actually giving you the better deal. Typically, banks have lower closing costs than mortgage brokers. You should also receive a Good Faith Estimate of Closing Costs when you apply. These are also an excellent way to compare item by item what you are being charged from each option. My advice, compare and ask questions. Source(s): 20 years banking experience Banks usually want large down payments for loans. Besides that, it makes no difference where you get your loan--it is the terms that you need to look at. I was jacked around by a bank--actually 2 banks-- when I was applying for a mortgage (as a single female...with a credit score of 780). So I got tired of that crap and went to a mortgage broker company, CTX mortgage. they do their own loans so they can give you better rates and set their own margins. Usually banks have to adhere to Fannie Mae margins and those can be very restrictive. I got a great loan without the bullsh*t, and maybe that is due to the fact my loan officer at CTX Mortgage was a woman with a couple of kids--- moms can multi-task and they don't jerk you around. Knowing the Fact that different banks have their strong and weak point. Your situation (Credit score, Income, down payment etc.) might not entitle you to the best rate avaliable form this one single bank. But knowing the fact that with the market so competitives no bank will turn you down. And if you do not want to run to 10 different banks get the best avaliable rate base on your qualification I suggest you to go to a mortgage broker. They know perfectly which bank or private lender will offer you the best rate base on your qualifications. Thus I would suggeset going to a mortgage broker first. Hope this info will help you Raymond Chan Real Estate & Mortgage Specialist raychan1217@gmail.com I would say to compare & see for yourself. I would give your details to the bank you deal with & see how much you qualify for, have them fax you a Good Faith Estimate showing the rate, points & fees associated with their loan. Then call a couple other companies (maybe shop for the best rate on a site called www.mortgage101.com for best rates & fees in your area/zip code). Call & ask the best ones you find also for GFE's on your scenario & tell them your shopping around (Don't let everyone pull your credit). If you do not know your credit score you will have to let at least one person pull it (maybe the bank) to know what your score is so you can tell everyone & get your exact quotes. Once you have the estimates you will see for yourself what's the best for you. I have seen many ppl call their bank because they feel comfortable & then freak out becuase they generally have the highest rates, points & fees & couln't approve them for as much as other companies. Everyone has their own opinions so check for yourself. Good Luck! |
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