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Mortgage 101

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Who pays the Cost For the Service Of Obtaining Mortgage?

A mortgage is a loan secured from a bank for the purchase of your new home.  You will repay the bank loan (with interest) over the term of the loan.


​What Avenues Are Available To Me To Secure A Home Mortgage?

​There are three basic channels for obtaining home mortgage financing available to consumers.  Each has differences in approach and structure.


​Commercial and Savings Banks are direct lenders and can be approached individually for mortgages.  They underwrite and fund their own loans and have specific programs depending on their own requirements.


​Mortgage Banks are banks solely in the business of offering home mortgages.  They underwrite and fund their own loans but have relationships with many commercial and savings banks and are able to offer programs from multiple sources.


​Mortgage Brokers are companies that do not fund their own loans but rather arrange loans for their clients through commercial and savings banks.  Mortgage brokers are typically paid commissions for their services by the banks they arrange loans through.  The banks, not the mortgage brokers, underwrite and fund the loan.


​Who pays the Cost For the Service Of Obtaining a Mortgage?

​All costs involved in the mortgage process are outlined in the Good Faith Estimate supplied by your banker or mortgage broker.  Whether you use a banker or broker, there is usually no direct charge to the client for the mortgage professional.  Application, appraisal and bank attorney fees are different from all lenders and should be reviewed with a mortgage professional before applying.


What Are the Types Of Mortgages?

​There are a few different types of mortgages to choose from.  Your mortgage professional will be your guide in choosing the correct mortgage for your financial situation.