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    (607) 757 2100
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    (315) 536 7456

Finding a Mortgage Lender-Where Should you Start?

Starting on the right course with your mortgageFor most people, the largest purchase they will make in their life is buying a home.

Among the many overwhelming and confusing aspects of buying a home-especially for the first time -is figuring out the mortgage process. How do you choose a mortgage lender or broker? And where do you look for one?

A knowledgeable mortgage professional can help you secure a loan that is matched to your needs. Home loans are available from many institutions-from banks and credit unions to mortgage bankers and mortgage brokers.

Start by asking friends, family or coworkers that have recently gotten a mortgage; see if they would recommend their lender. You can also ask a financial adviser, an accountant or your attorney to help you with a short list of lender referrals. These people deal with mortgage lenders regularly and can use their expertise to help you narrow down your choice.

Another way to find a mortgage lender you can trust is through your financial institution. Most banks and credit unions have a mortgage division. Having a history with the moneylender is helpful, especially for those with less than spotless or no credit history.

Real estate agencies often have in-house mortgage service providers. These lenders may have affiliations with real estate brokerages. Some real estate companies work hand-in-hand with mortgage brokers. Ask your real estate agent if he or she receives payment for referring you to an in-house lender.

Because loan programs and qualifying standards will differ from one lender to the next it can be a challenge for a homebuyer to shop around among all the different lenders. Aside from having access to a large pool of lenders, mortgage brokers use their knowledge of the many offerings available to find a loan that matches the borrower’s requirements at a desirable rate. Brokers do not grant the loan themselves; they find a lender who will approve the mortgage for the borrower. The mortgage broker then adds their fee to the wholesale rate, and in the end the mortgagor should get a rate that is equivalent to the lender’s retail rate.

To find out more or begin your mortgage process now, check out Southern Tier Mortgage.