Home Mortgage Information for Menifee Residents- Traditional Lenders or Online Lenders?

1.  Do you need to use the builder's home mortgage lender when you buy your house?-  Absolutely not!  All home sellers will recommend and sometimes aggressively encourage you to use their  home mortgage lender for your home loan.  Realize that the homebuilder will likely benefit financially if you use their mortgage lender. It is not uncommon  for homebuilders themselves to use the  very same bank to fund their  construction development.  Do your research before you commit  for your home loan. Online lenders like Ditech.com and LendingTree.com are great starting places. 

2. Do all mortgage lenders have the same rates?- Not necessarily. Many mortgage brokers shop around to find the best rates for your specific situation.  Online lenders, or at least those who advertise online such as ditech.com and Lendingtree.com  may also be a good option as they can usually find home loan programs that suit your needs.  You can visit the any online lender  to get an idea of rates for your area.  I would strongly recommend researching anywhere from 3-6 online lenders before making a final decision on your home loan. You may want to ask them to "beat" the other company's rate. Home loans are very competitive, you will be surprised what you will find.

3. Why should you use builder's lender for your home loan? - Some builders will offer hard to resist incentives to do so.  If this is the case, using their mortgage lender instead of an online home loan lender  may be a good idea.  However, do the math. Also, the paperwork and communication between your lender and sale's person may be more efficient.

4. Can you refinance your home loan later? - You can use the builder's mortgage now and refinance later with an online lender  if desired.  However, make sure there is no prepayment penalty, which a lot of times can be 6 months of interest payments.

What on earth are Home Equity Loans

What Type of Loan Do You Need