Getting a loan for your new house can be quite a pain, especially if you opt to get one from a bank. Most banks are quite useless and getting a loan from them consumes a lot of time and a whole lot of effort. First, you need to fill in a lot of paper work and you need a lot of documents in order to submit your application. This is why you should never approach a bank to get a loan since you will only be wasting your precious time. The other alternative is approaching a mortgage lender or broker to get you a home loan.
Banks require time, money and a good credit score. Not all people have that. Another horrible experience I've had with banks is facing the people at the desks. The people at the desks are extremely uninterested in helping you out and usually transfer you from one place to another, making a job which can be done in a matter of seconds take hours to complete. This is why it is better to avoid going to banks and instead approach a lender. A commercial mortgage lender can get you a loan at a better rate of interest than what the banks offer.
But lenders too are tricky people, some trying to get the most money out of you after noticing your desperation. This is why you have to be very careful while choosing a mortgage lender. If you have friends in the real estate business, try to get a recommendation from them. They are the people that usually work with lenders and brokers, and will help you find a good lender. If not you must hire the services of a broker. This might cost you initially, but will definitely help you save money in the long run, that is if you find an honest one.
Brokers are the middlemen between lenders and the borrowers. They are agents who help potential borrowers find lenders. Brokers do charge fees for their services, and these fees can amount to quite a lot. This is why you got to make sure that the broker does all the work and doesn't make you do any of the runnings around. Hiring a broker will save you a lot of effort and finding an honest one will help get you the best deal. There are many ways in which lenders and brokers can rip you off and you will not even be aware of this if you are not careful.
Brokers get a certain percentage of the loan deal from the lender and the commission is increased if the broker manages to raise the interest rate on the Home Loans. Another thing lenders do is quote a low-interest rate for the initial period of the loan term. This may seem incredibly attractive, but it is actually quite deceiving. You will only be paying the low-interest rate for the first year or so of the term and later on the interest rate will be raised.
So be careful while choosing a broker and don't ever go in for any teaser rates since you will only have to pay more. A bit of research is required to find a trustworthy broker who will give you good advice and find you a good deal on your home loan.
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