How to Get a Mortgage – First time home buyers usually need some advice on how to get a mortgage (and initially a pre-approval) so they can secure the financing to buy a home. Because there are different types of loans and each lender has specific products, it is essential for a home buyer to compare and contrast what each offers. It is recommended that a buyer get quotes from 3-4 lenders, and keep a spread sheet of the details of each quote.
For the best results, compare the same product from each institution in order to have an accurate analysis. For instance, start shopping for a 30 year fixed mortgage and have each lender give a quote on the specifics including PMI, origination fees, points and of course the interest rate. Make sure to ask are there any other charges, because they may forget to include them.
Using A Bank vs A Mortgage Broker
There are several ways you can obtain a mortgage. The first is to go directly to a lender (i.e. a commercial or savings bank that offers mortgages or a mortgage lending company). They directly lend you the money and therefore control the process start to finish. If you bank with a company that offers mortgages, it may be the best place to start. Because the bank is lending its own money they have more control and can be a bit more flexible.
The other option is to work with a mortgage broker – essentially a middle man- who will shop the market on your behalf and provide you with the best options based on your needs, credit score etc. since the crash in 2008 and the new restrictions to protect consumers, this is a less popular route to go.
At the very minimum, you should get quotes from 1 bank and 1 broker. Here are some people I have successfully work with in the past. They can help educate you and provide you with a pre-approval letter:
Evan Klein – Mortgage Consultant
To get started you can get a general idea of rates using this tool below.
Compare Mortgage Rates