Where Do You go to Get a Home Loan?
What’s a mortgage/home loan and where can I find one? This is a question that you hear more often than not. It sounds like a simple question with a simple answer, but if you don’t know the answer, you are not alone. Most people are only aware of one or two ways to get financing for a home.
Here are a few institutions that you can look into to get money for your home:
Banks Some banks make real estate loans, but most prefer installment loans for business and other types of property. Financial institutions can be very important partners, especially as one develops commercial property.
Mortgage Companies Usually, mortgage companies are investors and will do many types of loans and typically sell their loans in the secondary market to other financial institutions. Do not worry about the resale of your loans – it’s no big deal. On the other hand, mortgage companies typically do not allow you to buy down your loan. Look at the financing package to make sure there are no prepayment penalties as well.
Insurance Companies / Finance Companies occasionally make home loans, but finance companies are looking for high profit/high risk opportunities in general.
Other People’s Money (OPM) The people you are buying from can give you an “owner take back mortgage” (second mortgage); they can take property as a substitute for money; they can take personal loans, which you will pay back; they can trade for services; they can trade for other properties; they can put you in touch with other investors who make money on loaning to you; or they can become partners.