Oak Harbor Real Estate

How to choose the right mortgage for your situation

Buying a home is a big step but one worth the investment. Most home buyers need to obtain some type of financing to purchase their home. There are a lot of different options when deciding on which program to use. There are several ways to go about finding the right mortgage.

1. Bank or Credit Union
Your local bank or credit union will have options available for you when considering a mortgage. You will typically be assigned a loan officer to handle the transaction. The pros to this choice is there will probably be a little better rate and maybe lower fees and costs in buying the loan. You will have a loan officer that will help you with all the steps and make sure you have a letter of pre-approval to submit to  potential sellers showing you are a serious buyer and can afford the home. The con to this is that they only have their bank to loan you money from. They are restricted of course, to their own program. Although there may be options within their systems for different types of loans you will be subject only to their rates and fees.

2. Mortgage Brokers
A mortgage broker is someone that finds loans for people for a living. This is all they do. They are not tied to a specific bank but have access to hundreds of banks and options. They can typically find a great rate and the right set up for your situation. The down side to this is that you do pay for it. Fees can be higher but may be worth the cost up front if the whole loan over the life of it is less expensive. These brokers can also issue you letters when submitting offers.

3. Private Financing
Private financing
or Owner financing is when the owner of the home actually carries the loan. The rates are typically higher for the interest but you may not have to have as perfect credit as with a bank. Owners usually go on references rather than credit scores. This might be in your best interest if the seller agrees and your credit not perfect but you are willing to stay committed to a mortgage payment.