Financing my new home purchase
The days of groveling in front of your Seattle bank manager in your best suit is a thing of the past. Way back when, your banker would actually know you personally. These days you can deal with a mortgage broker over the phone or via e-mail in your PJ’s! You don’t actually need to meet the broker / lender in person.
In general, it is better to work with a mortgage broker than a borrowing directly from a bank since the broker will be able to shop around for many different types of mortgages and get you today’s best interest rates. Banks, on the other hand, will only be able to provide their mortgage programs and so you may not end up with the best annual percentage rate (APR).
There are different ways of financing your new home
If you are a first time buyer, it is highly advisable to work with a mortgage broker or lender who is willing to sit down with you in person for an hour or so. They should explain the mortgage process, the various factors used in determining the amount you can borrow, as well as what your mortgage options are. If the broker is not willing to spend time with you, then you may be better off looking elsewhere.
You also want to work with someone who is quick to get back you. There can be a lot of scrambling the week of closing and your broker needs to be on the ball. A good test is to call lenders / brokers a few times with general questions and see how quickly they get back to you. If they don’t answer quickly when they are courting your business, it’s probably a good indication that they will not be quick to respond when you really need them. Keep looking. Ask your friends or Realtor for suggestions.
