HOME MOVERS

Finding “Home Loan Lender” – You have two options to find a home loan lender, your local bank or a loan broker. The best place to secure a loan is your neighborhood bank. You will get the best terms and lowest closing costs there, but it will take longer and the requirements (credit score, job, finances, ect.) are more stringent.

I get all my loans from a loan broker. A loan broker is a middle man who is trying to generate loans and then he sells them to large home loan lending institutions. The loan broker is much more eager to get your loan through because he gets paid a commission. The commission is usually around 1% to 3%, but he can put it in the loan or have the seller pay up to 3% closing costs. Remember you can and should negotiate the amount of the commission with the home loan lender, loan brokers are a dime a dozen, so don’t just accept his commission at face value (shop around).

A loan broker is more expensive to use than your local bank but it’s faster, easier and they can help find a home loan for people with bad credit. Keep in mind that the worse your credit the more you are going to pay, but that’s just the cost of doing business. The simple way to find home loan lending is to go thru a loan broker. I would suggest that you get with a local broker and start a relationship.