Dean Shainin asked:


While deciding on the right lender, one should address the following questions: Does it really matter where you get your first mortgage? What is the difference between different types of lenders, and how does that impact on the mortgage you can get?

The lender you select can make all the difference in whether you get a mortgage, or whether you get the best mortgage that is suitable for you and whether the process is smooth or stressful.

Basically, you need to choose a lender who has significant experience helping first-time buyers. A lender who offers a wide range of loan types and packages is also ideal because it means that he will be able to offer you a loan that is suited to your needs. It is also important that the lender offer competitive rates.

So, when considering a home loan center to have a home loan deal with, the first step you should take is to educate yourself about the different types of lenders.

By selecting the right lender, you can save yourself a lot of time and you can also make the process of applying for a mortgage smooth and stress free. The main thing you need to know is which lender offers which types of loans better than another, as this will assist you pick the best lender for your financial circumstances.

There are two major types of lenders, namely those that accept deposits and those that do not, meaning, institutional lenders and non-institutional lenders.

Institutional lenders are inter- and intra-state banks, certain securities firms, savings and loans and credit unions. Non-institutional lenders include mortgage bankers, pension funds, and private lenders. There are some mortgage brokers who fund loans through a special arrangement with a bank.

Characteristically, the flow of paperwork within the home loan center of big institutions would be from a loan processor, who ensures that the proper documents are in the borrower’s file and in order, to the first-line or first-signature underwriter, who might be able to approve your loan depending upon the bank. The rule-of-thumb about approvals of strong loan packages which is used in most large lending institutions is that it takes one to approve, but at least two to decline a home loan application.

It is recommended that you get some information in regards to non-institutional lenders during the process of selecting the best lender. Many union members, such as carpenters and longshoremen, have money in a pension fund that makes mortgage loans. Some of these, such as the State Teachers Retirement System (STRS), lend to members of the retirement group who are retired or currently working and contributing to their fund. So this is one option of lenders for home buyers to consider, depending on their situation.

While selecting a home loan center you should understand that normally, if a borrower goes to a non-institutional lender, unlike a loan center, it is a mortgage banker. Mortgage bankers are the middlemen, who, after they sign off on loans, fund the loan with money borrowed from lines of credit from banks and/or other sources. When the loan is closed, they then sell the loans to Freddie Mac, Fannie Mae, Wall Street firms, or other institutions and investors.

Given the fact that they operate with lower overhead, mortgage bankers may offer a better rate than a bank. Although their individual approach will differ, all home loan lenders try to originate mortgages that will create a positive cash flow with the minimal amount of trouble and cost.

Regardless of what type of lender or home loan center you will select to deal with, ensure that the lender tells you what the offer is, that they explain the rates; the prepayment terms and the costs involved.

During the process of selecting the best loan for your situation, you will also need to know about the different grades of loans and their characteristics.

The type of lenders does impact on the type of a mortgage you can get, and you need to do your research and get all the necessary information about the various types of lenders and what they can offer; and then choose the one that best suit your situation.



BARRY

Lara Sawyer asked:


Mobile home loans are becoming increasingly popular as the mobile homes technology advances thus increasing the comfort of these homes on wheels. The mobile homes need to be sitting in land that can be provided by the different governments or can be purchased by the mobile home owner. However, it is not the same to get a mobile home loan covering only the vehicle than to obtain a mobile home loan to finance the purchase of the vehicle plus the land where it will be placed.

These two different loan types have particularities that define very different loan terms. It is therefore important to outline in advance what kind of loan product you are looking for. The main topics that you have to address are: the differences between mobile home loans that exclude or include the land where the mobile home sits in, the different regulations of mobile home loans depending on this fact and the ways of obtaining better terms on mobile home loans.

Differences Between Mobile Home Loans With or Without The Land

As explained above, there are two kinds of mobile home loans: Those that include the land where the mobile home will be deposited and those that do not. The first type can sometimes be considered home mortgage loans and other times they are simply mobile home loans. Those loans that do not include the money needed to purchase the property where the mobile home sits in are called chattel loans.

Since mobile homes can be stationed on parks or communities, the land is not a necessary factor and thus, when the applicant can not afford to purchase the land too, simple mobile home loans or chattel loans can provide you with all the finance needed to purchase your mobile home and have your own place to live. Eventually, when your mobile home is paid off, you can try and get approved for a mortgage home loan in order to obtain the land too.

Different Regulations May Alter Your Decision

In some states, just like with manufactured homes, when the loan amount is used not only to purchase the mobile home or manufactured home but also the land where it will stand, these loans can be considered mortgages and thus, you can seize all the benefits in terms of taxes and subsidizes that such category implies. Therefore, you need to check local regulations in order to see whether you can benefit more of a particular loan type or the other.

That is the reason why we say that the different regulations may alter your decision. Because you may have thought that you would rather avoid purchasing land and that you would stick to a regular mobile home loan instead but it is possible that if you chose to get the land too, in some states it may end up being cheaper.

How To Get a Good Deal?

If you want to get a good deal on your mobile home loan whether it includes the land or not, my suggestion is that you search online for mobile home loan lenders and request loan quotes from them to see what they are offering. Try to contact them informally to know their requirements for approval and once you are confident with a particular offer and lender apply for your mobile home loan. That way you will make sure to get if not the best offer, at least a great one.



MYLES