Facebook Pixel

Bank Mortgage or Private Mortgage: Which Is Better for You?

By Mike in Buying Tips with 0 Comments

Choosing the right loan is an important step once you decide to buy a condo for sale in Downtown San Diego. When looking for a loan, many people are unsure of whether they should go to their bank or find a mortgage broker that specializes in loans. Depending on your individual needs, either could be a good choice.

The Bank

The advantage of getting a loan from your current bank is you’ve got a steady, ongoing relationship with the establishment, and it can be easier to deal with finances when your accounts and your mortgage are from the same place. The trustworthiness and ease of use can make a bank a good choice for an uncertain buyer. However, banks do not specialize in loans. Therefore, they may not be able to give you many options, and the best loan for you may not be available. New regulations banks must abide by can also slow down the entire process of getting a loan, jeopardizing your ability to close.

A Private Broker

Since mortgage brokers specialize in loans, they can typically give a buyer excellent rates and terms. Most mortgage brokers also process all steps of the loan at their location, instead of sending paperwork to other branches, so the whole procedure is fairly streamlined and fast. Unfortunately, mortgage brokers can sometimes try to steer a buyer towards a specific lender, instead of giving them a variety of options and choices.

There are advantages and disadvantages to both loan options. Banks may be best for buyers with good credit who want to easily deal with their monthly budget, while mortgage brokers may be best for buyers who need to move fast and find a loan to accommodate their financial needs. To find the loan that works for you, try to comparison shop at both a bank and a mortgage broker.

Working with an experienced real estate broker in Downtown San Diego can make the home buying process as smooth as possible from start to finish, giving you peace of mind when choosing a condo or loft, deciding on lending products, and signing contracts. For more information, please call (619) 649-0368. ')}