You’ve just made a big decision…
You’ve spoken to your spouse, your friends,
your family, or someone you trust..
You’re going to buy a house!
The very first step you need to take to start the process of buying a home is to speak to a Loan Officer.
Now, Loan Officers, or Lenders, can vary.
There are Commercial Lenders, Consumer Lenders, Mortgage Lenders, so on and so forth.
When you’re purchasing a home, you’ll deal with a Mortgage Lender.
Here’s the difference in lenders when purchasing a property:
Commercial Lenders can help you when purchasing a commercial property.
Consumer Lenders can also help you buy property, but the rates will be higher and the terms will be shorter.
This is why you will want to use a Mortgage Lender.
Mortgages can stretch as far as 30 years, and the interest rates will be much lower.
How do they make that happen you might ask?
Typically, Commercial & Consumer Lenders are confined to the bank that they work in, meaning the rates are based off of their banks deposit to loan ratio. Usually these banks cannot take a “riskier” loan, such as a Mortgage Loan.
Mortgage Lenders, whether they work for the same bank or a separate institution, can find you better rates and for lengthier periods because they will work with larger banks. Most of the time, a Mortgage Lender has several banks they work with, i.e., Wells Fargo, Bank of America, US Bank, among others. With these larger banks, you will get better rates because they can take a larger risk.
You will still be talking to the Mortgage Lender from your bank, so don’t worry. They will be there for the whole origination period and they will be able to answer any questions you might have throughout the purchasing process.
If you want to refinance, you can still go to your Mortgage Lender, as they might be able to get you a better rate from a different place.
I have several loan officers I’ve worked with in the past, and I would be happy to help you find the one that is the best fit for you! Call me, Jill Bell, at 479.799.3023.