Hello, my name is Rhonda. If you have financial goals, this blog can help you achieve them. A few years ago, I realized that I didn't have a good plan for my future and I wondered if my financial needs would be met after I retired from my job. I immediately started planning for my future by speaking with a financial advisor and I learned a wealth of information at our meetings. By following the recommendations of my advisor and by learning everything I could about finances and money, I now feel very secure about my future. If you need financial help for retirement planning, college savings or even for an emergency fund, you can get sound advice by reading my blog. I believe that by following a few basic strategies, everyone can meet their goals and be financially secure.
Unless you have been saving cash for a very long time or are lucky enough to win the lottery, chances are you will need a mortgage loan when you decide it's time to buy a house. Most people simply do not have tens or hundreds of thousands of dollars sitting around. But who should you get a loan from? Here are the three most common options.
A traditional bank is a good option for people who will not be seeking any type of government-backed loan program. A traditional bank will typically offer a straightforward loan and will generally require a 20 percent down payment. They also tend to have stringent credit score requirements, which isn't a problem for many people. The advantage of getting a mortgage from a bank is that your financial accounts will all be together, and a bank doesn't usually sell their mortgages to other companies to handle.
A credit union and a bank have many similarities, but a credit union tends to be a local or regional financial institution as opposed to national like most banks are. Some credit unions cater to specific customers, such as those who are employed at a large business in town. These are called employee credit unions. An advantage of working with a credit union for a home mortgage is the service tends to be more personalized. For example, if you decide you want to buy your first home, you can schedule a meeting with a credit union lender to explore your options. If your credit needs work, they will recommend ways to improve your credit score. They will provide guidance on saving for your down payment. They will recommend the loan program they feel is best for you.
Credit unions may not weigh credit scores as heavily in relation to other factors, such as income or time on the job. A credit union will typically sell your mortgage rather than retain it in-house, however, and they may not work with government loan programs. For those looking to take advantage of the lower down payment on most government loans, this could be an issue if your credit union doesn't deal with them.
Mortgage Lenders And Brokers
A bank and a credit union can handle all your financial needs. A mortgage lender and broker only handle home loans. You aren't banking with them, just getting a mortgage. Mortgage lenders almost always work with government home loan programs. And because mortgages are the only service they offer, they know how to get it done quickly.
Mortgage brokers are like independent insurance agents — they work with several mortgage lenders to get the best mortgage rates and services for people. Mortgage brokers are not the loan originators, however; they are aware of the mortgage lenders that are best for your specific situation.
Contact a mortgage rates service company for more information.