If it is your first home purchase, your foremost concern is where to apply for a house loan or which mortgage lender will be suitable to assist your need to purchase a house. The best strategy here is to get to know better and understand the operations of different types of mortgage lenders.
Mortgage bankers are recognized generally as the ones to approach to for first time home buyers as they have the experience, being their mainstream job to promote mortgage loans especially to housing programs, that are collaborated by the state or local government, sold at the current market rate and at low interest, fixed rate. Mortgage banks are big institutions and this means that there are numerous mortgage applications pending for approval and, therefore, getting your loan approved may take a while. In instances when your loan is not approved, most mortgage banks will allow their loan officers to broke your application to another lending institution.
Another type of mortgage lender is called a portfolio lender or better known as a savings and loans lending institution. One of the salient points that is more important to portfolio lenders than guideline requirements from mortgage banks is about knowing the savings record of an applicant as well as his/her income capability. Portfolio lenders offer adjustable rate loans and these are slightly higher than fixed rates, therefore, their offers are not as competitive as mortgage bankers. Just in case your house loan does not pull through in any of the mentioned lenders, there are also institutions that perform as mortgage and savings and loans at the same time.
Because, in reality, most house loans are not easily obtained, this is where the networking skill and expertise of a mortgage broker company come in, as its job is into regular negotiations between wholesale lenders and loan officers. Mortgage brokers have these advantages: they have the knowledge as to which company you can better apply for a house loan, portfolio lender or mortgage banker, and they know how to put together again your loan in a different strategy and submit it to another lending company.
The latest trend in the mortgage lending industry is that for reasons of allowing more people to own fast a home, real estate companies and builders, especially the big companies, are also into mortgage lending, having established their own and, therefore, this arrangement may easily allow people to own a house but at the expense of a higher interest rate, which translates to greater profitability for the real estate company. It is in the interest of loan applicants to be cautious into entering any kinds of offers and that it would be good to study each one.