The majority of buyers need to get a mortgage loan. Choosing the house you want among the available Holly Springs homes for sale is not the only decision you have to make during the home buying process; you also need to choose what type of lender you’ll use.
There are many sources where you can get a real estate loan. In reality, there’s really no definite answer on what’s the best lender, as this depends on the varying situation of home buyers. Other factors that may affect your choice are the lender’s rates and the house you want to purchase.
Sources of Mortgage Loan
The various sources where you can get a real estate loan include the following:
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Mortgage Broker – Many home buyers get a loan from mortgage brokers, someone who acts as a middle-person who brings borrowers and lenders together. A broker may work with various lenders, some even work for 200 or more. You should inquire about the products that these brokers offer as they may vary from each one of them. Your options depend on the mortgage broker’s working relations. The fees can be paid by either the lender or the buyer, or even both.
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Credit Union – This institution is formed by individuals who have a common interest, for example, community education and state government employees, or religious groups. Credit unions are often under fire by other lending competitors as these institutions do not have to pay federal taxes while they benefit from some taxable advantages that others do not. The following are more information about these unions:
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To be a member of one of these credit unions, clients have to meet certain qualifications.
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The terms and interest rates are generally competitive and appealing.
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Many unions do not put their mortgage loans up for sale on the secondary market.
- Private Individual – Anyone who has money in the bank may lend you a loan, given that he/she complies with the regulations of the federal and state government concerning charges and fees, and interest rates, and that the individual provides disclosures required by law. Other details about this source include the following:
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Sellers may take back customary financing instruments like land contract, trust deed, or a mortgage.
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No title policy or appraisal might be required; however, it is still advisable to get title protection and an appraisal.
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Owner financing functions best on houses that are clear since existing loans likely have an alienation clause.
- Online Lenders and Stock Brokerages – Some companies who handle online savings, mutual funds, or IRAs also make mortgage loans, such as Ditech, Charles Schwab, INGDirect, and HFC Home Loans. It’s important to make sure that you’re only contacting those that are reputable and have secure websites; avoid fly-by-night operators. If you’re someone who wants to meet his/her loan officer personally, these online lenders may not be the best for you.
Whatever choice you make, be sure to consider all the factors when buying a property in Holly Springs real estate. You should also ask your agent for assistance on such matters.
