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MORTGAGES 102

Take the guesswork out of different loans

Choosing Your Mortgage Provider
If you haven’t done so already, once you’ve entered into a contract you need
to immediately choose a mortgage lender or broker. Several options are
available to choose from.
Bank: Dealing with a bank means going straight to the source, with no
middlemen. Occasionally, this allows you to procure a better rate. A downside
of borrowing from a bank, is that you don’t typically receive the full service
experience that a mortgage broker will provide. The bank manager won’t sit
down with you in advance to review your circumstances and advise you on
the best way to prepare for a loan, or inform you whether or not you will
qualify. They also tend to have the strictest debt to income ratio and income
requirements. However, if you are fairly certain you have your paperwork in
order and understand the process, you may want to go straight to the bank
for your mortgage.
Mortgage Broker: A broker is a professional who connects individuals with
the lenders or banks most appropriate for their circumstances. He will shop
around and help you find the lender most suited to your specific needs. He
will know, based on the particulars of your income, documentation, and other
circumstances, which bank is most likely to extend favorable terms, and will
help you through the process.
Mortgage Lender: A direct lender underwrites the loan and provides the
money, then sells the loan to a bank. All decisions are made in-house, by
their own staff. A direct lender can sometimes offer a more generous debt to
income ratio, and can sometimes obtain faster approvals.

2020 Lakewood Home Buyer’s Guide | 91