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Real Estate Financing Basics

 

Author: Paul Pratt

Most potential investors have no idea that the qualifying process could be so easy. Today's lenders make it that easy for most anyone to get some type of financing. In fact, now it is almost harder not to qualify for financing than to qualify. So don't be intimidated by the process. Lenders are on your side; they want you to qualify for their loan because that is how they make their living.

There are many different lending institutions that make their money through loan financing. There are banks, mortgage brokers, credit unions, private money firms and money lenders. Before you decide which source of financing is right for you, it is essential that you understand their differences and some definitions.

The Lender is the source of the money. It could be a bank, a credit union or a private investor. The person you sit in front of when you apply for your loan is merely the lender's representative.

The Mortgage Broker is a company or individual that represents many different lenders. Thus, they have access to a number of different loan programs. They work as the facilitator of the loan by connecting the lender to the borrower.

The Loan Officer is the person at the lending institution or mortgage broker that facilitates the loan process. The loan officer works directly with you to gather the borrower's qualifying information. Ultimately, the officer doesn't make qualifying decisions. The officer usually just pre-screens or pre-qualifies the borrower before sending the application to the lender.

The Underwriter is the decision maker. The underwriter works for the lender. They verify the applicant's documentation and financial information. The underwriter decides whether or not the applicant meets the criteria set by the lender and qualifies for the loan.

Author Bio:

Paul Pratt

Our team's diverse backgrounds and investing experiences include a high school teacher, a college drop-out, an MBA graduate, a waiter, a secretary, a real estate agent, a banker and a stay-at-home mom. Despite our diverse backgrounds, we shared a common, life-changing event; we all made the decision to truly change our lives. Although our starting points couldn't have been any more different, we each discovered that our journey toward financial freedom began with real estate.

Most real estate investing "gurus" offer a "one-size-fits-all" approach, providing generic ideas and uncertain results because their philosophies fail to consider individual experience and circumstances. Our personalized approach, the understanding that each of us has a very unique background and set of circumstances, is what has made MyreiTeam?s system so effective.

After years of learning "the hard way", we are now living our dreams. The high school teacher now has the ability to spend more time with his most important students, his own kids. The college drop-out is retired and enjoying exotic fishing and hunting trips. The waiter is now waited upon, vacationing and skiing in the world's greatest resort towns. The MBA grad and banker own their own real estate investing firm and the secretary now manages her own employees who are devoted to her real estate empire. The stay-at-home mom has moved her family into a luxurious 8,000-square-foot scenic mansion.

All of the wealth and success we have been enjoying has been better than we could have dreamed. But even more satisfying and phenomenal was the rate at which the Personalized Investor Matrix? was creating wealth for our friends and family who were using it to get started in real estate. Now we want to share this revolutionary approach with you. Our powerful, personalized investing system is now at your fingertips.

MYreiTEAM is exactly what it says, your team! We are here to provide you with all the help and support you need to succeed. If you have investment questions, need some support or motivation, or if you just made an exciting deal and just want to share your experience with somebody, post your question or experience on the My REI Community board. One of our team members will quickly respond to your question with expert advice. The point is we are committed to your investment success and are excited for the opportunities that lie before you. Welcome to MYreiTEAM!

You can also reach this article by using: college loans, student loans, personal loans, home loans, bad credit loans, countrywide home loans
 
 
 

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