What you need to know about Mortgages

Mortgage 101

You’re probably thinking that you will not be needing this knowledge anytime soon.  Yet if you are in the last years of college, you just might be surprised at how time flies.  Before you know it you will be out of school, trying to make a living, and looking to see if you can buy your own house.

I am sure that you have at least a slight idea of what a mortgage is.  In the simplest terms, it is a loan you take out in order to purchase your home or property.  Quite obviously, a mortgage is a loan for a huge amount and the repayment term is over a long period of time.

Before you take out a mortgage, there are several things you must take into consideration.  One of the most important steps is determining how much you can afford.  Each lender has his own way of determining how much they are willing to lend you.  This has something to do with your expenses, other loans, and income.  Before you shop around for a mortgage, estimate how much you can borrow.  You also need to calculate how much you can afford towards monthly payments over a period of years.  A mortgage is something you have to pay off and you have to take this into consideration as you plan your future.

Banks or Mortgage Brokers?

If you are trying to shop around for a mortgage, you will discover that you have the option of dealing with a mortgage broker or a bank loan officer.  Some people think that there is no marked difference between the two as in the end, you will get what you are looking for.  However, that is not exactly true.  There are big differences between the two entities.

Bank Loan Officers

These people are basically employees of a single bank or a lending institution.  As such, they work to promote their company’s loans and other products.  More often than not, they have a wide array of loans and products to choose from yet the fact remains that they all come from one business entity.

Mortgage Brokers

These people are not tied down to a single bank or financial institution.  Instead, they work as freelancers, bridging the gap between lenders and borrowers.  They are paid depending on the number and nature of the transactions that they are able to broker.  Most of the web sites promoting mortgages that you will find online today are considered mortgage brokers.

So which one should you deal with – bank loan officers or mortgage brokers?  There is really no hard and fast rule.  Each has its own advantages and disadvantages.  The deciding factor would be the terms that you can find and which one can offer you the best deal.

Mortgage Brokers in Los Angeles

In this section, I am going to list some of the most popular mortgage brokers that service the Los Angeles area.  I decided not to list down the banks as there are so many local banks that you can approach on your own.

My Loan Market

Their own description of themselves: “A free site which is a unique educational source to learn about California mortgages and loans in all 50 states, and you can actually get your loan done here in the least expensive, most efficient method possible: residential purchases and refinance, construction, commercial, land, bridge, mezzanine, conduit, portfolio, lines of credit, unsecured debt, and so on, created by Wharton Business School Professor Guttentag's only Wharton-educated Upfront Los Angeles Mortgage Broker.”

Mortgage Loan

This site is actually a site which consolidates information about mortgages.  You can find helpful articles, calculators, and other information within their web pages.  You can also search for mortgage lenders and brokers in Los Angeles from their web site.

Personal Home Loan Mortgages

This web site provides most of the information you need when considering a mortgage.  You can find national and local mortgage rates as well as financial tools that can help you make an informed decision regarding your mortgage.  If you want to keep up with the news regarding finances, this site also provides that information.  Browse their site to look at different mortgage lenders in Los Angeles.  More than that, you can also compare quotes from different mortgage lenders in Los Angeles direct from their web site.