Aaron Wluka's Blog
Over the years, mortgage options were likely limited to what a person's local bank was willing to offer him or her. But today's new marketplace provides several fresh opportunities. With the continuous influx of alternative lenders, many homebuyers are now fully ready to connect with lenders all over the nation. Online, they can check out several loan systems to the extent of choosing their preferred way of borrowing.
For the first-timer or homeowner looking to refinance a family homestead, alternative lenders are worth considering as you begin the loan-shopping process.
What is an alternative lender?
Succinctly, an alternative mortgage lender is a non-bank entity that provides you with home loans. These lenders offer homebuyers benefits they won't get if they go through their local banks.
Today's market is getting more intense and saturated with lenders from which to select and brokers who will utilize that extensive knowledge and experience to help homebuyers navigate the arena to get the best mortgage.
Also, you may notice that your bank mortgage options restrict applicants with low credit scores or poor employment history. If you may fall into any of these categories, then you will need to embrace alternative mortgage lenders since they offer you loan options you won't see anywhere else.
Types of alternative lenders
At the onset, when you start your mortgage search, you will come across two categories of lenders. The direct lender and the middlemen. The direct lender is the business that offers some loan products. Credit unions, banks, and a few online lenders belong to this category. The middle man, on the other hand, includes companies whose duty is to bring homebuyers to lenders. Good examples are the brokers and lending marketplaces.
Although alternative mortgage lenders bring people a step closer to homeownership by reducing the high cost of bank loans, they still have their merits and challenges.
- A quick and straightforward application process
- You may receive the funds within a day
- You can get a loan even if you have a poor credit history
- You can develop a good relationship with the lender to get a lower rate perhaps next time
- Most of their loans are usually a large amount
- Some alternative mortgage lenders may charge you hidden fees
Choosing to get your home through alternative mortgage lenders is a personal choice. However, it is exciting to know that there are more options when it comes to financing your home. Before choosing a lender, seek pre-approval from both a traditional lender and an alternative lender.
If you want to buy a home, the chances are that you are either buying it for a lifestyle upgrade, for business, as an investment, or for family use. Having decided to purchase the home of your choice, one of the significant decisions you have to make is to determine where you want to live.
The location of your property has a significant influence on the future value of your investment as well as most aspects of your daily living. Various factors will influence your choice of location when buying a house. This article is dedicated to finding those factors and the influence they have on your options.
1. Where in the Country You Choose to Live
Anywhere you want to live will affect your lifestyle especially if you plan to stay in your new home for a long time. Still, you need to look at some variables that are most important such as the median home prices, soft infrastructural amenities – healthcare services, entertainment, nearby shopping areas, and others.
2. The Kind of Neighborhood it's in
Any particular city has different areas, and each area has its own unique characteristics. So, you will want to choose an environment that fits your lifestyle and personality preferences. This should be a place you will feel comfortable and live in peace with your neighbors.Your kids and the schools they attend will have to form the basis of your choice. The neighborhood you are going to choose has to have facilities that support child development, sportsmanship, and cohabitation. Also, you need to check whether the neighborhood is at the risk of natural disasters such as floods and fire outbreaks. Some districts have incidences of repeated flooding and others wildfire. So ensure you choose well to mitigate against these risks.
3. Safety has to be a Top Priority
This is the security of both life and belongings. An area with low incidences of crime and robbery are often more costly places to live. On the other hand, you will pay less to live in less-secured places and compensate for the lower price with fear, theft, and the likes. Unfortunately, if you are in areas of low security, you might be forced to resell your home.
If you buy a home in the safest area you can afford, you will live all your life enjoying peace of mind. In fact, safety should be your number one factor or topmost factor to consider when looking for a property to buy.
There are many other factors to think about such as proximity to friends and family members, leisure activities, workplace, and other factors. Having narrowed down these factors, it is time to take that bold step of buying a home of your choice. So, go for the best, you deserve it.