Monday, 19 September 2011

Mortgage Lender: Thorough Preparation


A Mortgage Lender are companies, institutions or organizations who basically extends loan for purchasing a house or a property .It can be a intermediary bank, institution or commercial company. It is advisable to consult your real estate agent to refer to some reliable & good Mortgage lender, because the interest rates, fee structure, closing price & other related expenses has to suit your financial portfolio.

It is sometimes found that the estate agents have their in house affiliated Mortgage Lender. But somehow good agents do not limit their reference to in house lender only. Efficient agents do carry a list of reliable lenders & this service is free because referral fee is not legal. Sometimes it may happen that after a thorough research you choose a right Mortgage Lender, but later you find that the monthly payments are handled by an entire different institution, so one should very particular about the terms & conditions before entering into a contract with a Mortgage Lender. Before the agreement the lender should explain all terms of mortgage products.
In US there are small Mortgage Lenders Like local banks that only focus on extending loan for purchase of real estate only in a particular geographical area. These banks are affiliated with federal or state agencies in the same business. For the prospective buyer it doesn’t always matter whether the Mortgage Lender is a company or just a lender all boils down to paying low interests where the fee is also less. Mortgage brokers find a suitable Mortgage Lender for you. They have access to numerous such lenders so that one will get the exposure of the available opportunities. Sometimes it may happen that one finds an institution who works both as a broker & Mortgage Lender simultaneously. Once you get an offer start negotiating because on the same day a Mortgage Lender may place different offers to two persons with the same qualifications. It may happen with both fixed & adjustable loan rates. It is always better that the lender is asked to write down all the fee components along with terms so that you can negotiate regarding reducing or waiving any expense. So poke the wise & shrewd one in you before entering into an agreement with a Mortgage Lender.

1 comment:

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