Real Estate Forum

I have been looking at several homes and they all look amazing. I wish I was able to pay for the entire house with one big check and not have to worry about being approved for a line of credit. There seems to be several places that offer home mortgage, but I'm not sure which place is the best. I've been told that you should always go to the bank where you have a checking and savings account with. I've also heard that some real estate companies offer their own mortgages. Does it really matter where you receive your line of credit or should you be selective and do research on the company that is issuing mortgages?

In the past, many home buyers went to their local bank for home financing. They didn't take the time to look around for good rates, had never heard of a yield spread premium and didn't understand loan points. However, they were certain their local bank would give them a great loan regardless. Nowadays, banks are competing with credit unions, mortgage brokers and Internet companies. The market has gotten more competitive and people are starting to use these other avenues to get their home mortgage. I strongly suggest that you first read all the fine print before deciding on a mortgage rate. There is corruption in every industry so use caution.