Buying a New Home? Why You Should Go Through a Home Mortgage Company
Did you know that home mortgages broke records last year? Yes, in the middle of a global pandemic, home mortgages were breaking records. Close to $4 trillion in home loans were originated.
The home loan industry is confusing because there are a number of ways to get a loan. You can get your mortgage through a mortgage lender, mortgage broker, or bank.
Why does it make sense to get your loan from a home mortgage company? Read on to find out.
1. Mortgage Companies Are Direct Lenders
A home mortgage company is a direct lender. They have a full suite of mortgage loans, ranging from residential to commercial loans.
Banks are primarily financial institutions that offer checking and savings accounts. They do offer home loans, but they have a limited range of products. Mortgage brokers go between you and banks to find home loans for you.
Since mortgage companies are direct lenders, you have a wider range of products and you’ll get a better rate.
2. Avoid Broker’s Fees
Mortgage brokers earn commissions for each deal they close, which is usually around 2.5% of the home loan. The commissions get paid by the lender or by you.
Home mortgage lenders get paid, too. These are usually part of the closing fees, which amount to 1% of the purchase.
3. Relationships With Real Estate Agents
Mortgage brokers have great relationships with some banks. They usually partner with a few lenders to give you the best rate they can.
A home mortgage company has relationships with real estate agents. That’s an asset to have because there’s a great chance that they know your agent.
They keep your agent up to date on the home loan, saving time and money because you don’t have to.
4. Understand the Local Market
A home mortgage company typically is a smaller lender that serves a local market. They know a lot about that market since they live and breathe it on a daily basis.
That understanding translates to outstanding service. Home mortgage lenders take the time to educate you and give you financial advice. They’ll also help you with paperwork to get your application approved.
5. Flexible and Responsive
Mortgage brokers are intermediaries between you and banks. They essentially do home loan shopping for you. Banks have specific home loan products that they offer.
They don’t have a lot of flexibility to fit your situation. The loan products are often what you see is what you get solutions.
A mortgage company does have the flexibility to tailor programs to fit your needs. They’re also responsive and easy to work with. That’s necessary when you’re closing on your home.
Why You Should Work With a Home Mortgage Company
You have a lot of choices when you’re getting a home loan. A home mortgage company offers a lot of benefits over banks and brokers.
You have more products, flexibility, and you have someone on your side to help you learn about the home loan process. Plus, they have extensive knowledge of the local market and relationships with real estate agents.
Be sure to click on the Real Estate Talk tab at the top for more valuable real estate insights.