Choosing Lender For New Condominium
REM #
By Ilyce R. Glink
Summary: A home buyer is wondering if they should consider the lender the developer is using for her new condominium. Ilyce explains that the mortgage business is competitive, so you should shop around to at least three lenders.
Q: I'm 39 and about to buy my first condo, which is now being built.
A good friend who's a top loan officer with one of the larger mortgage companies in town says he can help me get a loan. My question is, would I get all the same loan options from him as I would from the lender my developer is working with? What's the difference between these lenders?
A: I can't tell you which lender will have the better deal because the mortgage market is extremely local. But it's competitive, so you should shop around to see who's offering what.
Be aware that while your friend works for a well-known company, he may or may not be able to get you the best deal. If you're buying new construction, the developer will often put together special long-term financing, and depending on how long you have to wait until closing, this might be a better way to go.
Why? The biggest problem with new construction is that the property is often not ready when you expect, so you can easily blow through your rate lock with a mortgage lender.
As always, call at least three or four different lenders to find out what's being offered in your area. You may also want to log onto www.bankrate.com for a larger snapshot of mortgage rates in your neck of the woods.
Seller Closing Costs
Home Moving Tips: Things to Do Before You Move
Looking At A Seller's Closing Costs
Beginner Real Estate Investor
Borrowing From 401(k) To Purchase Home
Link to This Article
Like what you've read? Spread the word! You can link to this article
from your website by copying the following code and adding it to
a page on your website:
Copyright ©2001-2007. ThinkGlink, Inc.
All rights reserved. Reproduction of material from any www.ThinkGlink.com pages without permission is strictly prohibited.
Site designed by Walker Sands Communications
