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Probably the most common place to get a mortgage these days is going directly to a bank. Yes, people still do that. Now I'm not saying it is necessarily a bad thing, depending on your situation, especially if you have a good relationship with the bank.🏦👍
I talked earlier about how to go use a mortgage broker, not a bank, but their banks are still the biggest provider of mortgages. 🗣️👨💼🏦
What the banks will do is they will look at your situation similar to what mortgage brokers do.
They will go through your statements, look at your credit score, look at the loan that you're trying to get, look at the down payment that you have, look at your financial situation, and of course, take a look at the actual property.📊💲👀🏘️
The nice thing about banks, they have these different products where for example, you can get a line of credit instead of a mortgage.📑💳💯
What happens is, as you pay the mortgage down, the available principal now becomes available on your line of credit.
There are some unique products that they have that they can make available too.
The other nice thing about banks is you have a relationship with the bank. Sometimes the bank manager can help pull a few strings for you.🏦👍
You keep all your banking in one place. You have got your checking account, your savings account, and you might even have your investments through them. Any investments in the stock market or mutual funds might be through them.🏦💲
If you are looking at going to a bank, you want to make sure that when you go to them that they don't give you what is called the standard rate.🏦📈
A lot of banks have the option to give you a discounted rate.
So yes, banks are a good source of funds. It's probably the number one source of funds. But I hear all the time people are concerned about, Hey, you know, my bank will only provide me up to four houses or financing for up to four units. There are restrictions on banks.🏦👍💲
So be careful when trying to use a bank that it doesn't affect your ability to scale with when looking at investing in real estate.