Since most people use some sort of financing, mainly a mortgage, for a significant part of their financing, for the purchase of a home, does it not make sense for them to know their options and alternatives in advance, and potential sources, to to do this? While there are many types of mortgages, generally classified as either conventional or adaptable, there are also many options for where one could get the needed and necessary financing. The main options are financing through a broker, a banker or seller. With that in mind, this article will attempt to briefly consider, examine, review and discuss how these work, etc.
1. Mortgage broker: A mortgage broker works the same way as any other type of broker! He identifies and qualifies potential clients and finds a financier that will best meet the home buyer's specific needs, taking into account factors such as interest rates, length, terms, down payment and who this particular person will be. benefit from dealing with (and of course qualifications). This professional does not personally finance the financing, but rather serves as a conduit to bring the parties together to achieve the best goal. Those who may not qualify automatically can easily find this, their best course, as the broker is able to shop around and find a suitable lender!
2. Mortgage Banker: Unlike a broker, a mortgage banker makes the loan and provides the financing for the transaction. Sometimes they keep the loan for a longer period of time, while others quickly sell the loan to others for maintenance. These lenders are considered primarily because they provide the money, rather than finding others to do so. Obviously this can be an advantage for some (usually the most qualified) but less so for others!
3. Seller Financing: In some cases, a real estate seller may either be willing (to expedite and simplify a transaction) or may prefer to fund this financing themselves. Sometimes this is for the full amount, while at other times it becomes a secondary form of funds to help an otherwise qualified buyer handle a significant down payment. Much of this depends on the overall real estate market. Obviously, in most cases, we see more of this, when there are buyers, than a, sellers market.
A wise, qualified, potential home buyer knows what is available and considers what will best serve his interests. Since for most, the value of their home represents their greatest financial asset, doesn't that make sense?
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