| So, you've decided to buy a house, and you're ready | | | | Credit Unions |
| for that all important next step--applying for a | | | | If you belong to a credit union that should be the first |
| mortgage loan. But where should you go? After all, the | | | | place you check for your mortgage loan because they |
| mortgage business is complex, and you've realized | | | | generally offer lower interest rates. Many associations, |
| quickly that your choices for lenders are immense. | | | | unions or even workplaces have their own credit |
| Here's a quick guide to help you understand all of your | | | | unions. |
| choices for lenders. | | | | Savings and Loan |
| Mortgage Banker | | | | Half of the mortgage loans in the United States are |
| By using a mortgage banker, you will deal with the | | | | made by local savings and loans. If you belong to one, |
| same person from the beginning to the end of the loan | | | | be sure to check their rates--they're likely very good. |
| process. The mortgage banker makes his money | | | | Government Loans |
| from the fees that you will pay for the loan, such as | | | | A lot of people falsely believe that the government is |
| the points and closing fees. After you've closed on the | | | | in the business of making mortgage loans--they're not. |
| loan, you may continue your relationship with the same | | | | But they do "back" certain loans, which make the |
| company, or they may sell your loan to a secondary | | | | lenders more apt to extend them. For the best |
| person. | | | | information on government backed loans, talk to your |
| Mortgage Broker | | | | local banker. |
| If you don't have the time to loan shop on your own, or | | | | There are also many mortgage companies online that |
| have a not-so-perfect credit history, a mortgage | | | | can help you find directmortgage lenders and home |
| broker may be the way to go for you. A mortgage | | | | loan brokers that will best suit your needs. |
| broker acts as a middleman between a borrower and | | | | This is a quick way to find a good mortgage loan and |
| a mortgage banker, and generally knows where the | | | | compare rates and offersfrom multiple lenders. When |
| best deals are, or which mortgage bankers are more | | | | lenders compete for your business, it works toyour |
| apt to grant loans to riskier borrowers. | | | | advantage. |