When purchasing a new property you can either use a mortgage broker or direct lender. A broker works with multiple lenders and is able to compare rates, turn times, service, etc among lenders. A direct lender will work directly with you. Both utilize loan officers who could be your primary point of contact, answer your questions, help you through the application process, etc. A direct lender can also be a wholesale lender and thus work directly with borrowers, or work through independent brokers.

When you are going to apply for a direct mortgage, you can utilize either a mortgage broker or a direct lender. Mortgage banks do allow borrowers to contact them directly. Direct lenders may also have an online application process. If not, you may be able to obtain an application at their offices or branches. Even if your realtor has recommended a specific mortgage broker, you still have the ability to attempt to obtain commitment from a direct lender on your own. For your first mortgage, there is no requirement that you must use a broker. You are able to apply with a lender directly.

Direct mortgages are available not only for purchase loans, but also for home refinancing. Many people who purchased property during a period when interest rates were much higher will look to refinance their note. With interest rates as low as they are now, this provides an opportunity to decrease the monthly note payments. Refinancing could be an especially attractive option for people with an ARM (short for adjustable rate mortgage) because they can lock in a great rate for the life of a loan and avoid the risk of rates going up again. Just as with a new mortgage application, going to a direct lending is a viable alternative for refinancing.

Another option for utilizing a direct mortgage lender is to obtain a loan collateralizing the equity of your current property. For example, if the current fair market value of your home is much higher than the principal balance of your mortgage, that equity can be used as the basis for a loan. These types of loans are often used for major home repairs or renovations. These loans might be called a home equity loan or home equity line of credit (HELOC). Financial institutions making these types of collateralized loans will have a set of criteria to test the applicant’s ability to repay the note.

Both brokers and direct lenders utilize a loan application form known as a 1003. Regardless of the type of loan-whether you want to purchase a home, refinance it for a better rate, or take out some spendable cash-going to a direct mortgage lender is an option that can help you find the money you need.

Related Posts:

• Benefits Of Refinancing A Mortgage
• Benefits of Having a Mortgage Broker
• Loan Refinancing Can Assist Mortgage Holders
• Doing What It Takes To Get A Mortgage Loan
• Get to Know the Different Types of Mortgage to Ease the Effects of Recession