Getting Started
If you've read this far, you're either looking for some information or looking for some help getting a home mortgage loan. Good, the purpose of this site is to point you in the right direction. Some of you have already bought and sold houses. If so, keep reading. You should find helpful information that will make you a more informed consumer.
For others, you may be getting ready for your first purchase of a home. Or perhaps, like a lot of people today, you may believe you can't get a mortgage loan. I see that often. Hardworking people that have had bumps in the road or trainwrecks for that matter and believe banks won't lend them the money for the home they want. And, quite often, that is correct. Banks do not consider them a good credit risk and will not lend to them.
I want to not only give you some new content, information, but a new context as well. Context is the facts or circumstances that surround a person or situation. I want this new information, content, to allow you to see yourself in a new context. A context of some one that can get a mortgage. Either today, right now, or in the near future.
Lenders
Banks and other lending institutions, lenders, are in business to lend money. That is how they make their money, by the interest they charge. Everyone knows that. However, there are two basic types of lenders. The traditional Banks that every one is familiar with and large lending companies that deal only in home mortgages. These comapnies, and there are a lot of them, are usually in business to do only one thing; lend money on houses.
Remember, traditional banks were established as depositories. They allowed a growing America to have a safe place to keep their money. Banks use to be the biggest and safest buildings in many towns. Banks today are still just that, safe and secure. And that's exactly how you want them. You want to know that when you deposit hard earned money in a bank, it will be there when its needed. Quite often, you don't even care if your money is earning any interest. Its more inportant that your money is safe and secure.
When you remember the purpose of banks, you more easily understand why banks only make safe secure investments. Its only natural for banks to want to lend money to people with excellent credit and a good stable employment history. Today, even banks do not require you to have much of a downpayment to purchase a home. Provided you have great credit and a stable employment history. You're their kind of investment, steady and dependable.
Mortgage lending companies, lenders, on the other hand have to operate from a different context. They do not have the depository assets to protect and profit from. Their profit comes from lending money on houses. Also, they operate in a, relatively, free market. Lenders compete with one another as well as with banks for your business. Its a very competitive market, especially today. Everyone knows mortgage rates haven't been this low in a very, very long time. Very low rates are a great boost for the housing market. But they also make it that much harder for lenders to make money by lending money.
Since lenders do business in such a competitive market, they develope special, niche, programs that other lenders or banks do not have in order to gain an advantage in the market place. This process greatly benefits the consumer. Its this process that creates the many programs that allow lenders to lend money to consumers that do not fit the safe, secure cookie cutter mold that banks are required to use when evaluating someone's credit worthiness.
