Friday, June 2, 2023

Mortgage Choices: Broker, Banker, Seller

Since, most people, use some type of financing, primarily a mortgage, for a significant portion of their funds, for the purchase of a home, doesn’t it make sense, for them, already, To know their options and options, and possible sources, for doing so? While there are many types of mortgages, which are generally classified as either conventional or adjustable, there are, too, many options from which one can secure, essential and necessary funds. The major options are using broker, banker or seller financing. Keeping this in mind, this article will attempt to briefly consider, examine, review and discuss how these work, etc.

1. Mortgage Broker: A mortgage broker operates, similarly, to any other type of broker! He identifies, qualifies potential customers, and, seeks a funder that will meet the home buyer’s specific needs, considering factors such as interest rates, length, terms, down-payment, and Who this specific person would benefit, (and, of course, merit) from dealing with. This professional does not finance individually, but rather, acts as a conduit to bring the parties together to achieve the best objective. Those, who do not automatically qualify, may simply find that this is their best course, as they are able to broker shop around, and find a suitable lender!

2. Mortgage Banker: A mortgage banker, unlike a broker, originates the loan and provides the funds for the transaction. Sometimes, they may retain the loan for an extended period, while others may quickly sell the loan to others for servicing. These lenders are considered primary because they provide money instead of finding others to do so. Obviously, this one can be beneficial, to some (usually, the most qualified), while, less so, to others!

3. Seller Financing: In some cases, the seller of a property may be willing to either, (to speed up and simplify the transaction), or prefer to self-fund this financing. Sometimes, this is for the full amount, while, at other times, it becomes a secondary form of funding, in order to help an otherwise, less qualified buyer, in terms of handling a significant down-payment. Much of this depends on the overall, real estate market. Obviously, in most cases, when there’s a buyer, we see more of it, seller’s market,

An intelligent, qualified, potential home buyer knows what’s available, and considers what might serve his or her best interests. Since, for most, the value of their home represents their single-largest financial asset, doesn’t it make sense?

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