18 February 2009

6 Reliable Financial Institutions to Get a Mortgage for Your Dream Home

To purchase your new home, you can get an affordable mortgage through mortgage brokers, mortgage bankers, banks, credit unions, savings and loan companies, and your government.

Most people hoping to buy a new home do not have the whole amount needed to purchase one. Instead, people get home mortgage loans to purchase their dream home. Here is a list of where you can get a mortgage:

Mortgage broker

Probably the easiest and the most common way to get a loan is through a mortgage broker. A mortgage broker is someone who stands between you and the lender. An effective broker will help you get the best real estate loan and find the right lender for your needs according to your circumstances. Fees for services of the mortgage broker will either be shouldered by you, the lender, or both of you. Looking for the right broker may not be easy. You can start by asking your family and friends for some recommendations or by going through online directories. If search the Net, you need to look for a broker in your area who is knowledgeable about the lenders accessible to you. He also has to know about some specific mortgage laws and regulations in your city or state. A mortgage broker in Perth, for example, will prove to be more effective when you purchasing a real estate property in Perth.

Mortgage bankers

Another easy way to take advantage of a real estate loan is through a mortgage banker. His role is similar to that of a mortgage broker, only that he represents a bank. The loan he presents are funded by a bank and not just any financial institution. The fees that you pay here are more regulated and are fixed compared to fees from loans introduced by mortgage brokers.

Banks

If you wish to take advantage of a loan through a bank, you may not have to go though a mortgage banker. Instead, you can approach a commercial bank you trust and inquire about their loans. You just need to be aware, though, that their loan products may be limited. On the brighter side, getting a mortgage through a bank can be beneficial for you since rates are competitive and incentives, such as discounts, can be granted to those who maintain a bank account with them.

Credit unions

Credit unions are institutions formed by a certain group of people with common interests, such as government employee organizations and religious organizations. Many buyers are attracted to their mortgage offers because of their competitive rates as they enjoy tax-related advantages that other lenders do not benefit from.

Savings and loans associations

As the name clearly indicates, these associations accept savings from depositors to whom they owe interest. Money from these accounts are invested and are offered for loans, specifically those intended for homes. Business and commercial loans are not offered here. Compared to other lenders, you can easily apply for a loan to purchase a real estate property, construct a house, or improve your home from savings and loans associations.

Government

Finally, your government may be able to get you a mortgage. Certain countries offer real estate loan programs that are very affordable. The government usually sets specific qualification rules to assess whether or not you are qualified for the loan you want.

Other ways to get mortgages include insurance companies, private individuals, and stock brokerages and lenders. Just keep in mind that when choosing a mortgage, you need to consider your current financial situation, as well as your projected financial state. Find a lender that is reliable, one that offers the most appropriate loan for you, and one that offers the best rates and fees.

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