Where to get a Home Loan
Many entities, including banks, credit unions, savings and loans, insurance companies and mortgage bankers make home loans. Lenders and terms change frequently as new companies appear, old ones merge and market conditions fluctuate. To get the best deal, compare loans and fees with at least a half a dozen lenders. Because many types of home loans are standardized to comply with rules established by the Federal National Mortgage Association (Fannie Mae) and other quasi-governmental corporations that purchase loans from lenders, comparison shopping is not difficult. Be sure to ask for the same size, type, and length of mortgage -- such as a 30-year fixed term mortgage for $300,000 -- so you're comparing apples to apples.
Fortunately, mortgage rates and fees are usually published in the real estate sections of metropolitan newspapers, and are increasingly available on online mortgage websites. You can also work with a loan broker, someone who specializes in matching house buyers and appropriate mortgage lenders, normally collecting their fee from the lender.
Be sure to check out government-subsidized mortgages, which have no down payment and low down payment plans. Also, ask banks and other private lenders about any "first-time buyer" programs that offer low down payment plans and flexible qualifying guidelines to low- and moderate-income buyers with good credit.
Finally, don't forget private sources of mortgage money -- parents, other relatives, friends or even the seller of the house you want to buy. Borrowing money privately is usually the most cost-efficient mortgage of all.
|
