They will help you qualify as to the interest rate, mortgages available, and whats the best combination for you. It will depend on your credit rating. Go to the best realtor and get someone to help you with qualifying for a mortgage. Realize that you qualify based on your monthly income and you must have at least 3 years of IRS tax returns to show your yearly income history. Closing costs can be paid in cash or added to the mortgage amount. That way you avoid the PMI payment each month. Get qualified first by enlisting the FREE help of your bank.

They know you and want to keep you as a customer by giving you mortgage advice to get your mortgage business.

They have a vested interest in making you happy, and of course, keeping you happy. Stay away from any mortgage advertisements on the internet or via the mail.

Get the best property you can buy based on location, location, location and your qualifying for the mortgage after you talk to your banker. Its amazing how much you spend in the 1st five years after you purchase a home.

The lender is the one who provides the money to the borrower at the closing table. In exchange, the lender receives a note evidencing the borrowers debt and obligation to repay, plus a lien on the subject property. Mortgage brokers do not lend. They are independent contractors who offer the loan products of multiple lenders, called wholesalers.

They also counsel on any problems involved in qualifying for a loan, including credit problems, take the borrowers application, and usually process the loan. Processing includes compiling the file of information about the transaction, including the credit report, appraisal, verification of employment and assets, and so on. When the file is complete, it is handed off to the lender, who funds the loan. Many large lenders have both retail and wholesale divisions.

Loan officers are employees of lenders or mortgage brokers.

Loan officers find, sell and counsel customers, and take applications. Loan officers employed by mortgage brokers may also be involved in loan processing. While loan officers are employees, they act more like independent contractors. They are compensated largely, if not entirely, on a commission basis. Both lenders and mortgage brokers post prices with loan officers to be offered to consumers. The loan officers usually have limited discretion to reduce the price if necessary to meet competition, and full discretion to raise the price if they can. Reasonably astute shoppers will probably do better dealing with a mortgage broker than with a lender. Because mortgage brokers deal with multiple lenders, they can shop for the best terms available on any given day. In addition, they can find the lenders who specialize in various market niches that many other lenders avoid, such as loans to applicants with poor credit ratings.

On the other hand, the risk of encountering a rogue who will trick you into paying more than you should is higher among mortgage brokers than among lenders. Mortgage banks now dominate the US market. Of the 10 largest lenders last year, 9 were mortgage banks and only one was a portfolio lender. However, many of the large mortgage banks, such as Chase Manhattan Mortgage and Wells Fargo Mortgage, are affiliated with large commercial banks. Portfolio lenders include commercial banks, savings banks, savings and loan associations, and credit unions. Deposits provide a relatively stable funding source that allows these institutions to hold loans permanently in their portfolios. Washington Mutual, a savings bank, is the only depository on the list of the 10 largest mortgage lenders. We actually started with our bank and then negotiated with another lender for the lower interest rate just before we went to settlement. Its a cyclical business, the trick is in timing the changes. The overall impact of the real estate market on the national economy should be minimal.

The people who are defaulting on mortgages now are the ones who shouldnt have been given loans in the first place. Fiscally sound people are not at risk.

As a matter of fact, most of the buyers now are the ones with cash in hand, looking to pick up properties that are distressed and undervalued. 25,000 on a property the day they close.

They have no liquidity, but they dont need it.

When the market comes back, they will sell at a profit. It is important to note also, that not all parts of the country collapsed. 1,000 in gift cards this year for free.