Many people don’t know the difference between a mortgage broker and a mortgage lender. Essentially, one is a path to the other. A mortgage lender is someone who actually loans you the money that you need to purchase a home. A mortgage broker, on the other hand, is simply someone who specializes in finding mortgage lenders, and connecting clients to them. Therefore, unless you have money to burn or really want to avoid doing your own research, there’s no reason not to cut out the middleman, and go to a mortgage lender directly. If you do decide to do it yourself, however, it’s important to know how to find the best mortgage lenders. Here are a few tips on how to choose the best one.
Know Who’s Lending
A wide variety of different institutions offer home loans. Largely, you’ll be deciding between a few different entities, two of the most prominent of which are credit unions and banks. Credit unions are generally smaller, more local institutions, whereas banks are much larger and more sprawling. With a bank, you get a whole lot of red tape and impersonal interactions, but you also probably will get a better rate. On the other hand, if you’re willing to pay a little bit more for more personal care, then choosing a credit union would be a good option. There are a few other types of institutions that could offer a loan, but those two are the primary ones.
Ask Your Friends
You don’t need a mortgage broker to have a network of people who have interacted with home lenders. Any friends or family that you know who own a home also had to go through the process at some point. Especially if you’re looking to borrow from a local company, ask around locally. The best way to find the best mortgage lenders in Raleigh, NC is going to be to ask around town, not to search online.
Ask Your Real Estate Agent
If you’re already to the borrowing money stage of buying a home, you’ve likely jumped through a number of hoops already. You’ve already formed a relationship with your real estate agent, who has found you the home that you are now trying to figure out how to purchase. It’s in their interest that you buy the house as much as it is in yours, and they will know lenders who will be able to offer you good deals and competitive rates.
