If you’re shopping for real estate, you’ll have plenty of options for home loans. You can go with a bank or credit union, or you can connect with a mortgage broker. Which is the best option for you? Here’s why we think working with a mortgage broker is more beneficial for people seeking a residential mortgage.
When you’re shopping for real estate loans, you need to understand the difference in the types of lenders. Essentially, there are two different kinds: direct lenders and mortgage brokers. Banks are direct lenders, meaning the loans come directly from them. The second type of lender is a mortgage broker, a company that acts as a sort “middleman”. Mortgage brokers work with many different lenders and help you compare multiple loan options.
Why does this matter? Especially if you have a low down payment or your credit score is not as high as you’d like, it pays to work with a mortgage broker. Because they work with different lenders, they have a fair amount of flexibility in helping to secure mortgage loans. Mortgage brokers know which lenders are more lenient on credit scores. Working with many different lenders enables them to shop around on your behalf and find the best home loan interest rates, so you’ll save time and money.
Mortgage brokers understand the different types of home loans and can help you find a loan that fits your unique situation. Often, banks can only offer conventional mortgages. Mortgage brokers, however, have access to a wide range of mortgage loans, so they can find the right one for you. Types of mortgage loans that might not be available through your bank include FHA loans, VA home loans, USDA loans, Jumbo loans and so on.
A broker can offer you a more personalized loan experience than you’ll get through a bank.
While a bank might just reject your application without much explanation, a broker will take the time to work with you and find solutions. You’re likely to feel more involved in the process and have a better understanding of how things work. Whether dealing with a limited credit history or a low down payment or you simply want to limit your closing costs or avoid mortgage insurance, it pays to have someone on your team who knows the ins and outs of real estate loans and can guide you in the right direction.
If you’re looking for home financing, First Coast Mortgage Funding is here to help. Committed to helping people in the First Coast region buy and refinance residential properties, we specialize in every kind of property, from single-family homes to condominiums, townhouses, and manufactured homes. Over 70 years of combined experience has made us independent mortgage experts, and we offer creative solutions to help borrowers overcome roadblocks when trying to secure a loan. Our goal is to provide home loans to our clients at the lowest interest rates and the best possible service. Contact us through our website or call 904.217.5450 for more information.