Consider the opportunity cost of deploying cash into a declining(real terms) asset class. If you had your cash in a cheap and appreciating asset class such as silver then you would be up about 30% from the start of 2012.
Cash in real estate is a severe liability guaranteed to lose you wealth in real terms.
Consider buying realty when rates are closer to 20% and home prices are 75% lower.
Realty continues to be overbought and illiquid.... more
Offer 50% of asking price. Worse that can happen is no deal. Move on to next home, offer 50% of asking price. Eventually you will find a motivated seller. What is the rush? Home prices will continue to fall for the foreseeable future. Sorry, but buying a home absent a huge discount is a guaranteed way to lose lots of money. Find the motivated sellers.... more
I think both have potential for you depending upon you needs. Banks tend to have slightly higher rates, but will take riskier loans... especially your local banks, while mortgage companies can offer more competitive rates. A positive to working with a local bank is that there underwriting department is usually located on site, so you can get quicker service. Mortgage companies also have a high level of customer service, but there may be a little longer lag time in there underwriting dept. due to a much higher level of processing they incur.
All in all, I would interview some of each and go with your gut! They all have competitive rates and may also offer you the opportunity to buy down your rate. Some lenders are even offering 100% financing again.