Mortgage Options: Broker, Banker, Seller
Given that most people use some type of financing, mainly a mortgage, for a significant portion of their financing, for the purchase of a home, doesn’t it make sense for them to know their options and alternatives in advance? and potential sources, to do so? While there are many types of mortgages, generally classified as conventional or adjustable, there are also many options as to where the necessary financing can be obtained. The main options are to use a broker, a banker, or seller financing. With that in mind, this article will try, briefly, to consider, examine, review, and discuss how they work, etc.
1. Mortgage broker: A mortgage broker operates, similarly, any other type of broker does! He identifies and qualifies prospective clients and searches for a financer that best meets the homebuyer’s specific needs, considering factors such as interest rates, duration, terms, down payment, and who this specific individual will be. benefit, to deal with (and, of course, qualifications). This professional does not personally fund the financing, but rather serves as a conduit to bring the parties together to achieve the best goal. Those who don’t automatically qualify could easily find this their best path because the broker can shop around and find a suitable lender!
two. mortgage banker: Unlike a broker, a mortgage banker originates the loan and provides the funds for the transaction. Sometimes they can hold the loan for a long period of time, while other times they can quickly sell the loan to others for repayment. These lenders are considered primary because they provide the money, rather than finding others, to do so. Obviously, this can be advantageous for some (generally the most qualified), while less so for others!
3. Seller Financing: In some cases, the seller of a property may be willing (in order to speed up and simplify a transaction) or prefer to self-finance this financing. Sometimes this is for the full amount, while other times it becomes a secondary form of funding to help a qualified buyer in terms of handling a significant down payment. Much of this depends on the real estate market in general. Obviously, in most cases, we see more of this, when there are buyers, than a, vendor’s market.
A smart, qualified, potential homebuyer knows what is available and considers what might best serve their interests. Since, for most, the value of their home represents their single largest financial asset, doesn’t that make sense?