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Mortgage Broker vs. Mortgage Lender: Does it Really Make a Difference? |
You thought finding the right real estate agent and
the right home was difficult. Ha! Now you must secure
the right funding, which means you have to start using
terms such as interest rates, down payments,
and
amortization scales.
Who will help lead you through this maze?
Should you
go with the mortgage lender that the real estate
agency conveniently told you about that night that you
frantically put together the offer on the home of your
dreams? Or do you look around for a mortgage broker
referred to you by a trusted friend, co-worker, or family
member? And, what the heck is the difference?
If you were standing around at a mortgage brokers'
convention, you would probably find all sorts of arcane
differences. Let me break it down for you in a couple of
simple ways.
- Mortgage brokers work with all different banks and
mortgage companies.
Here is one definition of a mortgage broker:
A mortgage company that originates loans, then
places those loans with a variety of other lending
institutions with whom they usually have pre-
established relationships.
- Mortgage lenders are the direct source. For
instance, if you walked into your local branch and got a
loan, you would be using a mortgage
lender.
Here is one definition of a mortgage
lender:
The institution making the loan or the individual
representing the firm. For example, loan officers are
often referred to as "lenders."
If you think that explains the difference
without the merits of one over the other, you are not
alone. Lots of people are confused. The advantages
of both depend on many things including:
- Are you looking for typical financing such as a 30-
year, fixed rate loan, or for something more creative,
such as one that starts with lower payments that
increase in amount over time?
- Is your credit stellar or is it in the cellar?
- Is the home you are buying going to be your
primary residence or are you buying it as investment?
- Do you need to close in a hurry or is time on your
side?
Mortgage brokers are the "middle men"
of the mortgage industry and can help you find the
mortgage that best fits your needs. Generally
speaking, if you have any sort of special need, a
mortgage broker is for you. They also do the legwork
for you and can advise you on your best options. In
some cases, they may make more money based on
selling customers a loan with a higher interest
rate.
However, if your needs are straightforward and you
have a sophisticated understanding of the mortgage
process, you may benefit from going directly to the
source: the lender. You really need to understand the
whole picture if you choose this option. For instance,
since rates change daily, you may not be able to
accurately compare option A with option B. One may
look better than the other, but you need to read the fine
print. Understand exactly what you are being
offered.
As I have said before, shop for your mortgage with
someone you trust. You don't choose a doctor from
the yellow pages or the Internet. You choose
someone with whom you feel comfortable and who
comes recommended. Do the same with your
mortgage.
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Debbie's Summer Media Spots |
Debbie Siegel recently was interviewed by
Peter Howe of New England Cable News
about the
July reports that home sales - and prices - are going
up. Here
is an excerpt from Debbie's interview:
"It's not about 'cash for clunkers' anymore. It's all
about cash for cottages, condos, and single-family
homes ... What I'm also seeing is historically low
interest rates, the prices have dropped and people
who were waiting on the sideline are now coming out -
- who have cash, who have the steady job -- are
buying.''
See
what else Debbie had to say!
Debbie was also interviewed last month by Scottie
McCall of Money Matters Radio. She offered
insights for
first-time home buyers, owners seeking to refinance
and owners at risk for foreclosure.
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September's Home Value Improver |
What Should Your House Wear?
After the all-important location, we know that some of
the key things that sell homes include fancy
bathrooms with modern faucets, grand master suites,
and kitchens loaded with shiny stainless appliances
and rich-looking granite. While location speaks for
itself, getting potential buyers inside to see the shiny
interiors can be tricky. For this reason, there is an
entire industry devoted to creating "curb appeal."
You've probably heard about the merits of brightly-
colored doors, pretty plants, and inviting
walkway.
But don't forget the obvious: what the well-dressed
house should "wear." What covers the outside of your
home is as vitally important to its look. It is also
important to your budget, as different types of siding
require different amounts of investment and work.
Let's look at the pros and cons of some of your
options.
Wood Clapboard Siding
Even with all the high-tech composites out there,
wood clapboard siding remains the most popular for
finer homes, especially here in New England. It has to
be painted every five or so years and it can get eaten
by termites, but with a life expectancy of more than a
century (or two), it outlasts most of its
competitors.
Stucco
Covering a house in cement seems like a prudent
thing to do, and it is. Stucco that is done with the right
materials, or "real" stucco, can last forever and
requires very little maintenance. However, imitation
stucco can have lots of problems and end up being
costly and looking lousy.
Vinyl Siding
With the promise of no maintenance and energy
savings, it was a popular option in the 1980s and
1990s. However, time showed that vinyl siding was
not all it was cracked up to be. It can get cracked,
scuffed, and dingy looking. Moisture can get trapped
underneath the siding, and more recently, experts
have looked at it under the lens of environmentalism
and declared that it is not very "green."
Engineered Wood Siding
The latest in siding is the "engineered wood." It is
made of a wood composite that is supposed to
require significantly less maintenance than regular
wood. While it looks better than some other sidings, it
doesn't quite look like wood.
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You may be wondering why I, as a mortgage broker,
would even raise the question of whether to use a
mortgage lender or a mortgage broker for your loan.
The truth is that for some people, a reputable
mortgage lender is an appropriate choice.
My approach to mortgages has always been that
there is a unique solution and a unique program for
each buyer. Buyers benefit from the expertise of a
mortgage broker if:
- It's their first time buying or refinancing.
- They have a lot of questions.
- They favor a high-touch, high-service approach
that guides them through the entire process.
But for some, a straightforward loan is all they need,
and a lender will serve them well.
Whether you decide to work with a lender or a broker,
you are always invited to call
or
email me for information on any
mortgage topic!
Best regards,
Debbie Siegel
President
Westchester Mortgage
P.S. You're receiving this E-Newsletter because you have a prior relationship with me or with Westchester Mortgage. If I've sent this to you in error, or if you want to remove yourself from the list at any time, just click the "SafeUnsubscribe" link at the bottom of this e-mail.
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Click here for some tips on
how to choose a mortgage broker!
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