Finding A Second Mortgage Just Got Easier!
Looking for the Best Mortgage
Shopping around for a home loan or mortgage will help you to get the best financing deal. A mortgage—whether it's
a home purchase, a refinancing, or a home equity loan—is a product, just like a car, so the price and terms may be negotiable. You'll
want to compare all the costs involved in obtaining a mortgage. Shopping, comparing, and negotiating may save you thousands of dollars.
Obtain Information from Several Lenders
Home loans are available from several types of lenders—thrift institutions, commercial banks, mortgage companies,
and credit unions. Different lenders may quote you different prices, so you should contact several lenders to make sure you're getting the
best price. You can also get a home loan through a mortgage broker. Brokers arrange transactions rather than lending money directly; in other
words, they find a lender for you. A broker's access to several lenders can mean a wider selection of loan products and terms from which you
can choose. Brokers will generally contact several lenders regarding your application, but they are not obligated to find the best deal for
you unless they have contracted with you to act as your agent. Consequently, you should consider contacting more than one broker, just as you
should with banks or thrift institutions.
Whether you are dealing with a lender or a broker may not always be clear. Some financial institutions operate as both lenders
and brokers. And most brokers' advertisements do not use the word "broker." Therefore, be sure to ask whether a broker is involved. This
information is important because brokers are usually paid a fee for their services that may be separate from and in addition to the lender's origination
or other fees. A broker's compensation may be in the form of "points" paid at closing or as an add-on to your interest rate, or both. You
should ask each broker you work with how he or she will be compensated so that you can compare the different fees. Be prepared to negotiate with the brokers as well as the lenders.