Lenders

The true test for a buyer is "What else can we buy for the same or less money?"

In short, a lender is anyone who will give you money. There are private lenders and institutional lenders, like banks and credit unions. Even your father-in-law can be your lender. Of course, when you're looking for a lender, you' re looking for a long-term relationship and terms and rates which are beneficial to you.

You really have a few options. You should go to a mortgage broker who will search the mortgage market for the best rates and conditions based on your circumstances. Usually the broker is paid by the lender without cost to you. However, the cloudier your credit history, the more likely there will be a fee! A good mortgage broker will be connected to all major lenders through the mortgage market.

You can also do your own search. With a good credit history, it's really not that complicated. Pick up your newspaper and you'll see what the different lending institutions are offering. Find the institution you feel you would be most comfortable with, and one that offers the terms and conditions you're looking for. Then, go in person and negotiate your best deal.

Mortgage Brokers

This is a person who will do the leg work in finding the institution which offers the mortgage terms and conditions that are right for you. Much like an insurance broker, this professional works for you and can offer you an unbiased referral. Although most brokers are paid a finders fee by the lender, some will charge 2% of the total mortgage to find you a lender.                
 


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