by Catherine Rein
(last updated April 13, 2009)
One of the ways to get a home loan, in addition to banks or credit unions, is through mortgage brokers. The mortgage broker works as the middle person between borrowers and banks or other lending institutions. Your realtor might refer a mortgage broker to you. They may have the best home loan deals since they often work with many different lenders.
Know your credit score before researching home loans. Your credit score will dictate the type of mortgage you might qualify for. If you have a credit score of 620 or lower, it might be wise to wait and try to improve your score before applying for a new home loan. Subprime mortgages or non-conforming loans are the loans given to borrowers with credit scores of 620 or lower. It can more difficult to be approved for any type of loan with a low credit score or you might have to accept a loan with a higher interest rate or additional fees.
If you are in the market for a new home loan, here are some things to consider about using a mortgage broker:
Keep in mind that if you have excellent credit, steady income and low debt loads, it might be cheaper and easier to work directly with a bank for home loan lending. Working with a mortgage broker may include paying additional fees.
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