A mortgage is a home loan that is used to purchase a house in Markham. When you are in the market for a new property, it is important to shop around and look at different sources for mortgages. Each lender may have a different interest rate and conditions you must meet before you qualify for the loan. You want to shop around to ensure you are truly getting the best deal.
There are many different lending sources. Continue reading to get a closer look at several of them.
Mortgage Lender Options
When shopping for a home loan, a bank is one of the first stops for many Markham residents. With this option, many borrowers feel more confident in the loan and underwriting process. Credit unions are similar and can be appealing to individuals who may be a member of the credit union. Some credit unions offer certain perks, such as lower interest rates, to credit union members.
A mortgage company is also a popular option. However, before you choose just any company to borrow from, do your research. You want to learn all you can about the mortgage company, it’s practices, etc. Take time to read customer reviews, business ratings, and more.
A few additional mortgage lender options include:
- Insurance companies
- Loan companies
- Trust Companies
What About Mortgage Brokers?
It is important to note the distinction between a mortgage broker and a mortgage lender. A mortgage broker is not the source of your financing. They will not lend you a substantial amount of money to purchase your home. Rather, mortgage brokers will work with you to find the best lender for your situation.
There are some benefits of working with a broker. For example, some lenders may offer exclusive perks and deals to brokers, who can pass on the savings to you. Other lenders may have certain products and services designed for brokers.
However, you will pay for the services of a mortgage broker. This can vary depending on the lender, but your broker will typically receive a commission for their work, which can be costly.
When you are on the market to purchase a new home, spend time finding the right mortgage lender. By choosing wisely, you will not only save money, but you will also likely experience a more pleasant real estate transaction.
If you have any questions about pre-approval, buying a home, placing an offer, etc., contact Markham real estate agent Martin MacFarlane today.