Mortgage Choices: Broker, Banker, Seller
Since, most people, use some sort of financing, chiefly a mortgage, for a meaningful portion of their funding, for a house – buy, doesn’t it make sense, for them, to know, in improvement, their options and alternatives, and possible supplies, for doing so? While there are many types of mortgages, which are generally, classified, as either traditional ones, or adjustable, there are, also, many options, as to where, one might obtain, the needed and necessary funding. The major options, are, using a broker, a banker, or seller financing. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, how these work, etc.
1. Mortgage broker: A mortgage broker, operates, in a similar way, any other kind of broker, does! He identifies, and qualifies, prospective clients, and, seeks a funder, who will best meet the specific needs of the home buyer, considering factors such as interest rates, length, terms, down – payment, and, who this specific individual, will assistance, from dealing with (and, of course, qualifications). This specialized does not, personally, fund the funding, but, rather, serves as a conduit, for bringing the parties, together, to unprotected to the best objective. Those, who may not, automatically, qualify, easily, might find, this, their best course, because the broker, is able to shop – around, and find, an appropriate lender!
2. Mortgage banker: Unlike a broker, a mortgage banker, originates the loan, and, provides the funding, for the transaction. Sometimes, they may continue the loan, for an extended period, while, others, might quickly sell the loan, to others, for servicing. These lenders are considered, dominant, because, they provide the monies, instead of finding others, to do so. clearly, this may be an advantageous, to some (usually, the most qualified), while, less so, to others!
3. Seller financing: In some instances, a seller of a character, may, either, be willing to (in order to expedite and simplify a transaction), or prefer to, self – fund, this financing. Sometimes, this is for the complete amount, while, at other times, it becomes a secondary form of funds, in order to help, an otherwise, qualified buyer, in terms of handling a meaningful down – payment. Much of this depends upon the overall, real estate market. clearly, in most situations, we see more of this, when there is a buyers, than a, sellers market.
A wise, qualified, possible home buyer, knows, what’s obtainable, and considers, what might best serve his best interests. Since, for most, the value of their house, represents their single – biggest, financial asset, doesn’t that make sense?