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Even those who have bad credit (aka credit challenged) have more opportunities to get into a home than just a
few years ago.
Not having a big down payment or any down payment for that matter is no longer a barrier to home ownership.
I can safely say that about half the loans I have done were closed without the buyer/borrower having to come in
with more than a few hundred dollars if any, at closing.
There are a number of ways that you can get into a house with little or no money. Some of them are; 100%
loans, 80-20 combo loans, Down payment grant programs and VA loans. It is of course, easier if you have
good credit.
A borrower with good or very good credit can even buy a home with no proof of income!
Brokers vs Banks
Mortgage brokers close between 60 and 70% of all first mortgages whether for purchase or refinance. One of
the main reasons for this is that they are able to shop for you. Pacific Mortgage is able to shop for the best rates
of over 30 wholesale lending institutions. The bank on the other hand, is limited to what they have in house. This
limits not only rates but also program variety. I have found that most banks rely on their relationship with
account holders to bring in business and therefore they aren’t pressured to offer better rates.
Most people think, I’ve had my checking account there, it would just be simpler to get my home loan there too.
This kind of thinking can cost you $$!
The fact is, that it will take the same amount of paper work almost anywhere you go, so why not get a better
rate. It may cost a few hundred dollars more to close a loan through a broker but that cost is more than made
up for in interest savings, usually in the first year. A mortgage is a long term commitment so think about the long
term costs.