Locating The Right Loan
You have the option of shopping around for the best terms you can obtain. Generally, a mortgage acceptance requires 30-45 days for conventional, 45-60 days for VA and FHA from application to approval. In some cases, loans may be approved more quickly. Prosperity Mortgage® Company is a joint venture between Long & Foster and Wells Fargo Home Mortgage.
Shop Smart For Mortgage Money
It used to be that qualified homebuyers simply went to their nearest bank or savings and loan for the standard, fixed-rate, 30-year mortgage or the VA/FHA backed loan. Interest rates were not highly competitive—back then.
Now, of course, things have changed. Competition among lenders is lively, and smart borrowers shop carefully to find the financing that best suits their circumstances and needs. Here's where to shop:
Mortgage Lenders. Mortgage lenders issue mortgages to borrowers. They then process and sell the mortgages to large investors or into the secondary mortgage market.
Mortgage Loan Brokers. Some individuals or groups charge a fee (usually to the borrower) to match borrowers with lenders. Sometimes they make direct loans. An advantage of working with mortgage brokers is that they often represent many investors and can provide you with many more financing alternatives, usually at the same price as the mortgage banker.
Financial Institutions. Mutual savings banks, savings and loan associations, insurance companies, and some commercial banks are the traditional sources of mortgage loans. Savings and Loans often grant favorable terms to their own account holders.
Private Lenders. Individuals (often home sellers) and groups (sometimes seller's employers—if the seller is being transferred) lend money. This source is especially helpful in arranging second mortgages, but can also assist with first trusts, wrap-arounds, and other mortgage plans.
Credit Unions. Federal credit unions can write 30-year conventional and government insured mortgages. Some will make loans; others may not. This may be a good source for credit union members.
Finance Companies. To compete with the more traditional lenders, some finance companies promise quick service and some do not charge mortgage "points" or "pre-payment penalties".