Charlotte Home Loans – Which Lender is Right for You?
One of the most misunderstood aspects of Charlotte home loans is the different types of home loans that are available to Charlotte homebuyers. Most buyers assume they have to obtain a home loan from a traditional savings and loan. That is not the case and there are several different options for Charlotte homebuyers to use.
Here are the main types of mortgage lenders and how each of them function:
Mortgage Bankers: Mortgage bankers are loan originators that operate with the sole objective to sell the loan they create to another source. Even though they will sell the loan they must have the ability to finance the loan in the first place and hold it until it is sold.
Mortgage Brokers: This type of lender does not actually originate the loan for your Charlotte home, they prepare the paperwork to submit to multiple lending institutions and get offers, from which they will present to you to select. Their offers may come from any of the other types of mortgage lenders. Many people believe that this type of loan is costly because of the additional work the brokers have to do to ‘shop’ for the loan for you but, they can oftentimes find aggressive rates for you and the lender will sometimes even pay the brokers’ fees, making the cost of the loan even less than that of other types of loans.
Banks and Savings & Loans: These are the most common traditional sources of mortgage loans. They use the backing of their depositors to fund mortgages. In turn, they use the money paid by borrowers to repay the depositors’ interest for allowing them to use the money as an investment.
Credit Unions: Credit Unions operate in largely the same way a bank or savings and loan does by using money from a pool of depositors to finance investments in the form of mortgages and other types of loans. The difference is that most credit unions are operated out of a collective pool of closely associated people generally through a work place or professional organization.
If you’d like help determining which is the best type of mortgage for your Charlotte home purchase, give me a call or email me today.