Should You Get A Home Loan Through The Bank Or An Independent Lender?

    Are you looking to purchase your own home? If so, you may be wondering if it is better to get a home loan through a bank or an independent lender. Getting a home loan through the bank will have more requirements than getting one through an independent lender. When applying at the bank, you will need a good credit score as well as a down payment of at least 20 percent. The more down payment you can make, the more likely you will be to get approved for a home loan. Independent lenders will be more lenient about credit scores, but can require collateral. Look at your options before searching for your dream home.

    Getting a home loan through the bank

    If this is your first attempt at getting a home loan, it may be more difficult for you. Banks are known for being impersonal when it comes to loans. The staff at the bank doesn’t cater to people that they already know. This objectivity means that it is difficult to get a loan from the bank through the help of relationships.

    The bank has complex underwriting systems and policies to approve a home loan. To get approval from the bank, don’t let payments on your house exceed one-third of your income (monthly). Your credit score should also be about 680 or higher. Having this credit score lets the bank know that you have a good history with managing debt and paying bills on time. You should take a down payment of 20 percent to the bank when applying for a home loan. This 20 percent should be from the entire home value and will be the equity that you start with. The more down payment you can make, the more likely you will be approved for a home loan through the bank.

    Some banks will also offer a mortgage calculator on their website to help you determine a payment that you can afford.

    Getting a home loan through an independent lender

    Because of the requirements to get a home loan through the bank, many people choose to go to an independent lender instead. Independent lenders have become popular for secured loans due to the higher amount of loan to value (LTV). Independent lenders can offer up to 85 percent LTV.

    Also, if you have bad credit, you can still be eligible for a home loan through an independent lender. For a secured loan, you will need to put up some collateral.

    Getting a home loan through the Elite Real Estate Group in Amarillo

    The Elite Real Estate Group in Amarillo, also offers financing for people looking to buy a home in the Texas Panhandle area. This team can guide you through the process of buying a house as well as find the right loan for you with low down payments and competitive rates. View the finance page to get in touch with these local experts.

    For more information on buying and selling a house, contact the Elite Real Estate Group in Amarillo. Give us a call today at (806) 337-0883 or Contact Us via email. You can also view our listings to see the properties we currently have available in the Texas Panhandle area.

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