These days many real estate brokerages have a lender in their office to supposedly make the process easier for the buyer to get a loan, helping to create the “one-stop shop,” which usually includes a settlement company, as well. Even though buyers can choose whichever lender they would like to use, they are actively encouraged to use the in-house lender.
Without a doubt, the hardest and most misunderstood part of getting a mortgage these days is the evaluation of funds used to purchase a new home. For some people, just saving up for a down payment is the hard part; for others, it’s justifying from where the money came.
Young people’s preferences are starting to shape how the way real estate business is done. The real estate portal Zillow predicts that millennials will overtake baby boomers as the generation purchasing the largest number of homes this year, making their preferences even more important.
Many sellers feel that the spring market is the best time to place their home on the market, as buyer demand traditionally increases in the springtime. And with interest rates projected to be a full percentage point higher by the end of 2015, buyers are going to be anxious to get under contract as soon as the weather breaks.
In my personal experience as a mortgage originator I have had the opportunity to work for both direct and correspondent lenders, and I’ve seen the pros and cons of each type of loan. Here are my thoughts about which loan dominates in which areas: