In the "old" days-that is, before "creative financing"-home buyers in Elkhart County, Indiana had few financing options when it came to purchasing a property. However, in today's environment, a buyer has the choice of everything from a fixed, 15 or 30 year mortgage and an adjustable rate mortgage (ARM) to an amortized 30 year mortgage with a balloon payment at the end of seven years.
Sound confusing? It can be, buy fortunately, there are numerous helping hands not only in Elkhart County, Indiana but other communities as well, for the perplexed home buyer. For instance, your local real estate professional Evelyn Johnston with Prudential One Realty can provide assistance. And so can a "mortgage banker" and/or "mortgage broker.
What is a mortgage banker and/or a mortgage broker? And how do they impact you when you purchase a home?
First, the mortgage banker is a lender. Mortgage bankers may consist of banks, insurance companies and large mortgage lenders. Going direct to one of these institutions can save time as well as money.
On the other hand, a mortgage broker is an intermediary whose role is to bring the lender - that is, the mortgage banker - and home buyer together. The mortgage broker may deal with one or many lenders and he or she acts as a facilitator. A competent mortgage broker can save a buyer time in finding a lender who will finance a purchase with attractive, highly competitive terms. Many mortgage brokers also provide advice and support to your local real estate professional.
Whether a buyer works with a mortgage banker or mortgage brokerthere there is one thing the home buyer should keep in mind. That is, the ultimate goal is to secure the "best" loan possible.
But what does "best" mean? For most buyers "best" can be classified into four areas:
(1) Service. Are the lenders noted for their service? What experiences have other buyers had with them? What are they going to do for you to make this process as rapid, smooth and "painless" as possible? Do they have special programs (like pre-approval or low documentation loans) that take the hassle out of the loan?
(2)Reliability. Do they keep their word? Do they deliver when they say they will? Previous clients--what do they think?
(3) Speed. Is loan approval done quickly and efficiently?
(4) Cost of the loan. Is it competitive? What is the interest rate? What is the cost of all the fees? (Be wary of "junk" fees, which your local real estate professional can help you spot). Be sure to compare the loan's Annual Percentage Rate (APR) , which considers the total interest rate and fees for a loan and lets you make a better comparison.
Still, even with these guidelines, selecting the right mortgage banker - mortgage broker can be confusing. However, there is an answer - talk to your local real estate professional. An experienced professional has dealt with many bankers and brokers. He or she knows who can offer you - the buyer - the best combination of service, reliability, speed and cost. And that's what financing a home is all about! Real Estate Agent Evelyn Johnston can help you if you are looking for a home in the Elkhart County Real Estate Market. Call 574-304-7148.
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