Over 65% of homeowners all have a home mortgage. There may be many places to finance a home, but which organization is best?
A non-bank mortgage lender, otherwise known as a mortgage company, is a great place to get home loans.
Before you purchase a home, you want to choose a mortgage company since the best mortgage companies are imperative to the process. Mortgage lenders can advise you on the type of home loan that will work better for you and can even assist with getting you home equity loans if you own a home.
You Can Depend on Loan Experts
A mortgage broker is a loan expert. You can rely on them to tell you about different types of loans that could be the perfect fit for you. But how do you find the perfect mortgage company and broker? If you are purchasing a home for the first time, your realtor can advise you concerning great mortgage brokers in Texas. Why should you use a mortgage company instead of a bank when it comes to lending? One main advantage is the fact that mortgage lenders can offer you a variety of loans that are more forgiving if you have damaged credit.
Why Use Mortgage Companies?
Another benefit of using mortgage lenders is that they go through multiple processes between mortgage companies and federally chartered banks. Also, a loan originator at a mortgage company must go through extensive training in order to provide broker services. They are required to pass at least two examinations, a state exam and a national exam before they are allowed to practice. Those tests stress knowledge of the business as well as consumer protection laws. Once an originator has been licensed by the state, that license is required to be renewed every year. What does this mean for you when you need a mortgage? That a mortgage lender has more credibility than a bank. The FDIC does not require loan originators from a bank to have specific knowledge of mortgage programs or practices. Which organization are you more comfortable using now?
The Specific Advantages of a Mortgage Company
Mortgage companies offer specific advantages that a bank can’t touch. They have a wider range of loans to offer that a full-service bank cannot. Banks offer loan programs that remain within guidelines set by Freddie Mac, Fannie Mae, the VA, and FHA. What if your loan situation does not perfectly fit within any of that criteria? Your loan will be declined.
You need mortgage loan servicing. With access to more structured loan programs and a variety of loan officers, you will get better service than you could at a big national bank. Since a mortgage company only service mortgage loans, a streamlined process is in place that is better than the process a bank can offer.
Essentially, you are assured that your loan will close much quicker. Another advantage is being able to utilize lower fees and rates with brief rate lock terms. Mortgage lenders have proven in the past few years that they are fast and flexible when it comes to closing loans for their customers.
Lenders Are Less Strictly Regulated
Lenders tend to be less strictly regulated than a bank. When you need customized loan options, lenders come closer to being able to accommodate a buyer’s specific needs. Together you can better reach home-buying goals with a financial scenario that fits your budget. Other positive benefits include better advice and loan guidance, more lending training and experience, a plethora of loan options, the ability and willingness to negotiate on loan terms, and a much faster loan closing procedure.
After closing, a mortgage lender may sell your loan. This isn’t a cause for alarm and is actually common and just means that you’ll work with the company that bought the loan. It’s a streamlined process that changes the lender you pay with both lenders working with you to ensure that the progression is fully understood. Your original mortgage terms and rates will not change after the loan is sold.
