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| * BANKS... read as... ...TRUST COMPANIES, CREDIT UNIONS, MORTGAGE LENDERS, INSURANCE COMPANY, UNCLE GEORGE ETC. As in the case of every business there are various levels of competency, expertise and skills. Banks are no exception. Although all Banks tend to offer competitive mortgage rates, it is the individual policies of the specific institution that may make a difference in where you should get your mortgage. Unless you are very informed with the various terms that are offered by all of the Banks, you will be hard pressed to compare and negotiate a good deal for yourself. Just because you have been a long term customer of a Bank, it is sad to say that it doesn't mean that you are going to get any better treatment then anyone walking in off the street. Over the past 20 years or more, banks in general have posted a higher than average profit for each quarter and it seems even in changing times, they will maintain the formula that works for them. Alternative arrangements for a mortgage can be made with someone who will also look out for your interests and that person is a Mortgage Broker. If you happen to have an experienced mortgage specialist at your branch of the bank you deal with you are indeed fortunate. Before you agree to even apply for a mortgage, shop around and select the lender you prefer to use and preferably one that has the best rate, terms and all of the prepayment options you can get. Ask all of the questions you have predetermined a head of time but sign no application until you have reviewed all of the lenders you wish to interview. Remember, you are the customer here and the lenders (Banks) really want your business. If you qualify at one institution, chances are you will probably be welcomed at all of them and this is where you can negotiate a great mortgage package for your next purchase. Every time you make an application for any kind of credit, a short enquiry appears on your personal credit report. You must refrain from putting in applications to every lender you speak with otherwise your credit summary may look that you have been turned down for credit more than once, although this is not the case. The lenders realize that you are shopping around and may not give your application serious consideration because they feel the chances of you becoming their customer are reduced with each new credit check by other lenders. So now you have shopped around and talked to the various lending institutions and made your choice as to which one you wish to deal with. Now is the time to put in the application which gives the lender permission to check your credit history. Once this is accomplished and an approval is forthcoming, usually with some conditions such as obtaining an appraisal, requesting a copy of a survey just to name a couple. These conditions will also vary according to the type of property you finally will purchase. Since it is common knowledge that lenders have been known to renege on verbal financing commitments it is incumbent upon you to ensure that you receive a written confirmation from the lender as to exactly what product they are providing to you stipulating all the conditions and the length of time it is valid for. Oh... and I didn't forget about Uncle George. If you can get a mortgage from a realtive like Uncle George or Aunt Molly or even Gram or Grampa... DO IT! You will probably never get a better deal (or at least you shouldn't) than borrowing money from family whether it be a down payment or a 1st or 2nd mortgage. But then in some family's, money is thicker than blood. Armed with this information you can now explore the world of the MLS (Multiple Listing Service) with a competent Realtor, again of your choice. But that to, is another topic you may want to explore by going to Agency1o1! BACK TO www.realestate1o1.com |