Where Do I Find a Good Lender? Before you get a good loan, you must get a good lender. These days they are everywhere. You can go to a single-source lender such as your bank or your credit union. Or a multiple-source lender such as a mortgage broker. The mortgage broker has the advantage because he or she solicits loans from a wide variety of lenders, including banks, insurance companies, and pools of investors. Often a mortgage broker can match you up with just the right lender for your needs. Ask your real estate agent for a mortgage broker recommendation. Also, check with any friends, relatives, or associates who recently bought a home. Chances are they used a mortgage broker and can recommend (or steer you away from!) a mortgage broker. As a last resort they are listed in the yellow pages under Mortgage Brokers. (Note: A mortgage banker may not make loans directly to consumers. Look for a mortgage broker.) Also consider online mortgage brokers. Check a good search engine for them. Also, look into:
No-Doc/Low- Doc Loans
How you receive your income is important, too. If you work for an employer and receive wages (meaning a W-2 form at the end of the year), you get preference mainly because it is easy to verify your income.
Affordable Merit Rate
Freddie Mac’s, Affordable Merit Rate® Mortgage is a mortgage for
borrowers who have had some small credit problems. The loan is
for a higher interest rate. If the borrower is able to make 24 consecutive
on-time payments within a four-year qualifying period,
the interest rate is reduced.
Fannie Mae’s Fannie 97® offers a 97-percent mortgage. There are,
however, income and geographic area restrictions. And the borrower
must participate in face-to-face education programs. And
there are other restrictions. more