Purchasing a new home can be very stressful for you. It is the largest purchase you will ever make. Understanding the mortgage industry is very confusing, and you are placing all your trust into one person. That one person could be your Spouse, Real Estate Agent, Mortgage Originator, Home Inspector, Parent, or a close friend that has a better understanding of the mortgage industry.
The most important factor for you purchasing a new home is feeling empowered. To access that feeling, you need to shop around for a good fit for someone that understands your needs, and patient to answer all your questions.
Mortgage loans come from the following institutions.
- Credit Unions
- Mortgage Lenders
- Mortgage Brokers
Myth #1 – Mortgage Brokers charge an extra fee and closing cost will be higher than if you went to a Bank, Credit Union, or Mortgage Lender. Truth, Mortgage brokers seek powerful investors that approve and service your loans, so it is typically not sold or transferred. That creates more approval power since they are approving and servicing the loan.
Myth #2 – Credit Unions are not in the mortgage business as much as they use to be. Truth, Credit unions are much part of the mortgage industry. They create unique mortgage products to better meet the needs of their members.
Myth #3 – Mortgage Lender underwrite their own loans, they have “more approval power” then other institutions. Truth, Mortgage Lenders do underwrite their own loans, but if that underwriter is on the fence for the loan to be sold to another investor, they are better off declining a loan then having to buy back the loan and servicing it for the term of the loan.
Myth #4 – Banks are the only place to get a mortgage loan. Truth, most new home buyers default to their local bank. It is easier to speak to someone they already know and can talk about finances with.
Stay empowered by shopping around at all 4 institutions. Who is calling you back? Who is answering your questions? Who is confusing you and saying “trust me”?
Get a quote for exact closing cost and their best interest rate using a property address current listed for sale. Warning: Unless you are getting a pre-approval letter, never give out your social security number.
Once you receive a ratified sales contract, call the Mortgage originator you received the pre-approval letter from and get exact closing cost and their best interest rate based of the ratified sales contract. Then also call, your top 2 other mortgage originators (do not give your social security number yet) and provide them the sales contract. Let them give you their best quote and exact closing cost.
Once you choose, give out your social security number and start the loan process.
At Topaz Mortgage, we would love to be one of your options. To get started please call Todd LaBorwit Directly at 301-637-8054.