Shopping for a Loan

With so much going on lately in planning to build a home, it's like a full-time job. I say planning because whether you are building your real estate in Va Beach or the Shenandoah Valley, the preparation plays such a large part of the entire process. There's the temporary power, well and septic permits, building permits, house plans, driveway construction and maintenance agreements. The list goes on and on.

Then it comes time to secure our lender. While you are shopping for your loan, keep these things in mind:

Your choice of lender and type of loan will influence not only your settlement costs, but also the monthly cost of your mortgage loan. There are many types of lenders and types of loans you can choose.

You may be familiar with banks, savings associations, mortgage companies and credit unions, many of which provide home mortgage loans. You may find a listing of some mortgage lenders in the yellow pages or a listing of rates in your local newspapers.

Mortgage Brokers: Some companies, known as "mortgage brokers" offer to find you a mortgage lender willing to make you a loan. A mortgage broker may operate as an independent business or may be operating as your "agent" or representative. Your mortgage broker may be paid by the lender, you as the borrower, or both. You may wish to ask about the fees that the mortgage broker will receive for its services.