Buying a home comes down to making a series of choices. The obvious first is deciding if you’re ready to take the steps toward homeownership. The next steps are finding the right home, deciding how much money to put down, etc. However, what you might not realize is that you also have a choice when it comes to the type of mortgage lender you want to work with. There are a wide variety of lenders out there, but we’ve outlined three main types you can choose from.
Traditional Banks
One of the more common, and traditional, ways to get a mortgage is through a traditional bank. Banks are full-service financial institutions, so you can find a wide variety of finance products available at your local branch.
Banks that offer mortgage services could be a great option for you if you already have a standing relationship. If you have multiple products through your bank, like checking or savings accounts, credit cards, or even other loans, you might feel safe and comfortable sticking with your usual bank to get your mortgage.
In addition to already having access to your financial information, going with a bank you already use can also come with some unique perks. You might be able to get specialized rates or terms on your mortgage if you’re a current banking customer. Using the same bank for multiple transactions could also give you the option to consolidate multiple purchases, which might save you money in the long run.
Overall, banks can be a great option for your mortgage if you already have multiple accounts and a bank representative that you feel comfortable doing business with.
Mortgage Companies
Mortgage companies are financial organizations dedicated to only providing home loans. Lenders at mortgage companies undergo specialized training to become licensed in the states they serve. That means you’re getting top notch when you use a specialized mortgage company.
When it comes to mortgage companies, you can expect a wide variety of home loan options, including exclusive programs you might not have access to anywhere else. Dedicated mortgage companies have the flexibility to be able to assess multiple options to find the best program for your situation. Many mortgage companies also have in-house Underwriting, Processing, and Servicing, which allows them to keep most of their loans in-house for the term of the mortgage. That way, you can build a long-lasting relationship throughout the life of your home.
In case you didn’t know, Flat Branch Home Loans is considered a mortgage company. Since we only do one thing – mortgages – we consider ourselves to be experts at it. In addition, at Flat Branch Home Loans, we’re dedicated to providing a personal touch to our loans. Our philosophy is, “It’s a family, not a file,” which means we take the time to assess our client’s individual needs and figure out the best program for their situation and goals.
If you’re a first-time homebuyer or looking for a hand to hold throughout the entire homebuying process, mortgage companies might be the right option for you.
Internet Lenders
Internet lenders are a newer facet of mortgage lenders. Brought on by a need for speed and efficiency in a sometimes intense homebuying process, internet lenders are a wonderful tool to help experienced homebuyers.
Internet lenders, sometimes referred to as Consumer Direct lenders, streamline the process by working rate tables. These are standardized rates and requirements that allow for a more straightforward loan process. Since they work rate tables, you might not be able to find the same kind of flexibility you can with a bank or mortgage company. However, they tend to be able to get much quicker approvals and pass the loan from application to closing in a timelier manner.
Another perk of Internet lenders is that the whole home loan process is done online. You can take your loan from application to closing without ever having to step foot in an office, which is a huge advantage if you’re relocating or need more flexibility in your homebuying process.
The fast-paced nature of these Consumer Direct lenders caters perfectly to the needs of experienced homebuyers who are looking for a quicker close. Since the loan process is taken care of online, it’s a great option for homebuyers who aren’t interested in the more specific details of their homebuying journey.
Deciding on a Lender
So how do you decide which option is right for you? Buying a home is a deeply personal experience, and you deserve the kind of lender who will best fit your needs and goals. To choose the right lending option, you should assess what your goals are and how the investment of homeownership will fit into them. From there, it’s all about determining what kind of relationship you want to build through your homebuying process. It’s easier said than done, but it’s important to weigh your options and make the best decision for your situation.
Think you’re ready to move forward in your homebuying journey? Flat Branch Home Loans is ready to help! Contact one of our experienced lenders today to help tailor your homebuying experience.
