There are so many choices you’ll have to make when it comes to buying a home. The very first one should be how you’re going to pay for the home.
You’ll need to find a loan officer and start with a quote. There are lots different places where you can get a loan. One option is your Bank, another option is a Retail Lender or a Mortgage Broker. In my opinion, Brokers are better!
Now I know, you’re probably asking what’s the difference? Well, there’s a big difference and that's what we're diving into.
Banks or Credit Unions
Whether you bank with a local Bank or big Credit Union usually they have the ability to give you a home loan. Now with a bank you’re limited to their products only within their financial institution so you may be limited and could be missing out on a better deal somewhere else. Also, one thing to think about. What are banking hours? Your loan officer works those hours, so if you need them on a Sunday, or Holiday, or after hours you may lose out on your dream house. If that works for you because you just love your bank, great! Have at it.
Retail Lenders
Retail lenders are similar to a bank in regard to programs and flexibility. They only have what their institution has and nothing more. They typically are more available than a bank. They tend to have better rates than your bank as well (unless your bank is running some crazy deal which they do sometimes).
Mortgage Broker
Now here’s where you’ll get the most flexibility. A mortgage broker is a liaison between you and the lender. Brokers still do everything the other 2 loan officers do but they have way more options. Brokers work with lots of different lenders so you’re not put into a one size fits all loan. What if you don’t fit in that box? What if there are better programs out there that you don’t know about. A broker will find out and put you where you fit best and where you benefit the most. A broker also has more flexibility when it comes to interest rates which is a huge plus in this current market (2023). Like I said before; Brokers are BETTER.
Interview your Loan Officer
A good relationship with your loan officer can make a HUGE difference in how your loan process goes. If you like them, trust them and work well with them then your loan will be much smoother than working with someone you don’t like or don’t trust. How they pre-approve you should also be a huge factor in who you work with which brings me to the next part.
Pre-Qual VS. Pre-Approval
Which ones better? Well that depends on who you ask.
There is so much controversy over this subject. Some people will tell you a pre-qual is better, some will say a pre-approval. But if you want to know the truth, they’re the same damn thing. We all call it a different name based off how we were originally trained. In my version, a pre-qual is when you have a conversation with a loan officer, and they give you a pre-qual letter based on what you tell them. A pre-approval is what you get when you supply all your supporting documents, and the Loan Officer verifies them. Half the Loan Officer population thinks it's opposite. At the end of the day, it doesn’t matter what they call it, really what you want to do Is just make sure your Loan Officer is asking to see your bank statements and income documents and verifying what you say is fact.
Now that you know how to hire your loan officer – go get ’em tiger.
Want a broker? I got you. Head back to the home page and contact me.
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