Competition is Good

Brought to you by Iowa Mortgage Solutions

There are a lot of lenders out there that finance home mortgages. This is a good thing! After all, the more lenders, the more they will compete to finance you. This means better interest rates, better down payment options, and all around better mortgage terms for homebuyers.

Shop Around!

Some personal banks can be offer competitive rates and there is some convenience to obtaining a mortgage with the bank that you already deal with on a daily basis. BUT a lot of personal banks would love to make you believe that you should go through them simply because you know them and it’s safer that way.

In reality, as long as you are buying a house in the United States, you can safely obtain a mortgage with any certified lender in your state.

The point is that you should not automatically assume that your personal bank is the best option, or vice versa. It can be a good place to start, but you should always look beyond your first option because competition typically results in a better deal.

Check with a mortgage broker

A good way to shop around is to contact a mortgage broker in your state. Mortgage brokers are middle-men that have a networks of lenders and banks to compete over mortgages. One pro to using a mortgage broker is the flexibility.

A Quick Look at some of the possibilities

  • 100% financing w/ 580 credit in some cases
  • Financing for credit scores as low as 500
  • Recent bankruptcy or foreclosure
  • Self-employed financing w/ bank statements
  • A low fixed rate possible
  • FHA streamline and VA IRRLs available

Because of lender competition, mortgage brokers can typically offer a better chance of getting approved for people with less than perfect credit or no credit at all.


Another way to shop around is to personally go from lender to lender and see what terms each one can offer you. Many lenders post their rates daily if you sign up for a free account with them. Calling in or stopping into a bank or lender at their office is another way to get the scoop on what they can offer. It is imperative to take caution not to have multiple lenders pulling your full credit report, as it can have adverse effects on your credit rating.

In Conclusion

Checking with your personal bank is a good start to get a general idea of what your options are. That being said, a good mortgage broker can be a one stop shop for the complete mortgage process. A quick Google search for a mortgage broker can show you reviews and references that are helpful when picking a mortgage broker. A  mortgage broker with great reviews will generally be able to help anyone in any situation get great mortgage terms.  For a list of top mortgage solutions in Iowa click here.

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