Getting a Mortgage? Don’t Just Rely on Banks

Approved mortgage application form with house key on a tableBanks are a good source of home loan funding, as they are competitive with other mortgage lenders. The sad part is banks don’t offer a large variety loan of programs. Some may not offer a certain low down payment mortgage or home loan renovation programs. As these institutions mostly focus on standard loans, you may as well consider another lender for a unique or specialized mortgage program.

Can You Qualify?

Primary Residential Mortgage, Inc. and other mortgage companies in Portland note that it is also common for bigger banks to have stricter qualifications compared to other lenders. Some may require a high credit rating or a much lower debt-to-income ratio. Not all of them are also willing to be flexible to help you qualify for a loan, which means that you need to meet all their guidelines to finance a new home purchase.

Contacting Other Lenders

This makes it important to contact other types of lenders when looking for a mortgage. Note that if a bank rejects your application, this does not necessarily mean that other lenders will do the same. Loan requirements vary by lenders, but it is common for mortgage companies and brokers to offer flexible guidelines in approving your application.

Multiple Loan Products

Mortgage companies also offer a large variety of loan programs, as well as mortgages for borrowers with poor credit. With multiple mortgage offerings, you can compare different loans products and choose the one that suits you best. They also spend more time looking for mortgage programs and rates to meet your needs. They are also more willing to negotiate with you than banks.

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If you’re still considering working with a bank, be sure to weigh the pros and cons. While it is true that some may offer potential discounts and competitive rates, they do have tougher requirements and limited loan products. If you’re looking to buy a house with little down payment, it is better to contact a mortgage company or broker. The same is also true if you’re looking for a specialized mortgage like a hybrid ARM, buy down mortgage, and others.

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