Choosing a Lender

A useful tool for today's real estate consumer, comparison shopping has been simplified by the service of computer loan origination systems and mortgage reporting services. These are firms that report terms and loans of major lenders in metro areas every few days and post the information sheets on who is offering loans on what terms.

Shop for mortgage lenders to find the best deals. Check out several mortgage companies and use reporting services. Put in some real effort, make some phone calls and do the legwork. If you can't find a reporting service for your area, start at your own bank or credit union.

Independent mortgage companies comprise over half of all home mortgages, including most VA and FHA insured loans.

Savings and loans and savings banks originate nearly a quarter of home mortgages. The majority of these are conventional loans not guaranteed by the VA or FmHA, or insured by the FHA.

Banks are active in home mortgages. Banks also are a major provider of mobile-home loans.

Mortgage brokers are intermediaries. Brokers stay aware of the mortgage market throughout the local, regional and national lenders, and can refer  prospective borrowers to a banks and independent lenders. Brokers don't lend money and don't approve loans.

Credit Unions originate close to one-third of all first-mortgage loans, but you must be a member. Fortunately, becoming a member has become easier as credit unions have become more aggressive in the lending market.

State and local finance agencies make below market rate financing available to eligible low and moderate income first time buyers through the sale of tax exempt bonds.

Employers can be a source of loan assistance. An employer may subsidize the interest or even be a lender. Unions are also a good source. The AFL-CIO has what is termed "Union Privilege." Unions that sign on can make first-time home loans available to eligible members for as little as three percent down.

Shopping for a home is much like shopping for clothes or cars. You buy what is in your budget. This calculator will ballpark the figure that reflects your budget. Before shopping, estimate your limits on what you can spend. You can figure the same way that lenders and brokers do. .....

You know much a property is and just want to know what the monthly payment would be? This nifty calculator will give you the payment and even amortize the loan for you. Just enter your information and click. Find out now if that property is in your budget....

Is there really an advantage to owning a home over renting? Find out if your situation would improve if you purchased a home or if you should continue to rent by using this handy calculator. Plug in the vital information and it will show you the difference. It might just surprise you...