Cary Mortgage
QUESTIONS ANSWERED...

How do I get a mortgage?

Answer...

Following tips might help:

1. Improve your credit rating.

Credit Rating is a measure of your ability to execute your financial commitments. A good credit rating would mean that you are a low-risk proposition and as such, you make up for a good debtor and hence, it enhances your chances of getting financed.

Credit Rating takes into account your past credit history. And as such, it is essential that you maintain a blemish free record. Make timely payments of your bills and do not accumulate debt.

2. Arrange maximum down payment possible.

The more you put down the better. It improves your rates, reduces or eliminates the need for mortgage insurance and gives you a headstart on building equity. Of course, you should only put down what you can afford to go without and there are options available for low and in some cases, even no down payment.

3. Have a contingency budget.

Don’t pour everything on your new home. There are tons of expenses that a new home would entail. There will be many unforeseen expenses like registration fee, broker’s fees, legal fee, possible renovation / modification costs, etc..

4. Consult a realtor.

A realtor will not only be able to help you find the home of your dreams but will also be able to surf you through the mortgage rates and help you select the best-suited financer. A realtor would guide you at each step of the process and make things easy and convenient for you.

Experienced realtors are also acquainted with the latest trends of the market and have wonderful negotiating skills. Just make sure that the realtor you go with is reliable and authentic

What is the difference between mortgage broker and a mortgage lender?

Answer...

Mortgage Lenders - Mortgage Lenders are financial institutions that are large enough to originate loans and create pools of loans, which are then sold directly to Fannie Mae, Freddie Mac, Ginnie Mae, jumbo loan investors, and others. Any company that does this is considered to be a mortgage banker.

Some companies don’t sell directly to those major investors but sell their loans to the mortgage bankers. They often refer to themselves as mortgage bankers as well. Since they are actually engaging in the selling of loans, there is some justification for using this label. The point is that you cannot reliably determine the size or strength of a particular lender based on whether or not they identify themselves as a mortgage banker.

Mortgage Brokers - Mortgage Brokers are companies that originate loans with the intention of brokering them to lending institutions. A broker has established relationships with these companies. Underwriting and funding take place at the larger institutions. Many mortgage brokers are also correspondents.

Mortgage brokers deal with lending institutions that have a wholesale loan department.