Choosing the Right Lender When Buying a Home

The type of lender you choose can make or break the sale of your next home. I’ve seen sellers reject offers and escrows crumble to pieces because the buyer chose the wrong lender. So it’s really important to choose your lender wisely. In this article, I’ll show you how it’s done!

Choosing the Right Lender: A Crucial Step in Your Home Buying Journey

Selecting the right lender is a pivotal decision that can significantly impact the success of your home purchase. I’ve witnessed deals fall apart and sellers reject offers due to the choice of the wrong lender. In this article, I’ll guide you through the three main types of lenders – Big Banks, Online Lenders, and Direct Lenders – to help you make an informed decision.

1. Big Bank Lenders

Pros:

Often offer competitive interest rates.

Cons:

Slow customer service and response times.
Limited availability on nights and weekends.
Transactional confusion due to multiple parties handling the account.

Summary: While big banks may provide attractive interest rates, their sluggish response times and organizational challenges can pose issues, especially if a speedy transaction is crucial. Sellers aiming for a quick close may be hesitant to accept offers dependent on big banks.

2. Online Lenders

Pros:

Quick pre-approval processes.
Decent interest rates.

Cons:

Operate like factories, suitable for standard loans.
Less accommodating for unique or complex financial situations.

Summary: Online lenders excel in speed, making them ideal for straightforward transactions. However, if you have specific circumstances, such as being a first-time homebuyer or having a complex financial history, an online lender may not be the most suitable choice.

3. Direct Lenders

Pros:

Local and familiar with the market.
Consultative approach to find the best loan program for your needs.
Excellent customer service with night and weekend availability.
Personally vested in each transaction, enhancing the chances of loan closure.

Cons:

Not always the lowest interest rates.

Direct lenders, often local to specific regions, provide a personalized and consultative experience. They prioritize customer service, answering calls during non-business hours, and are personally invested in ensuring a smooth transaction. While their rates may not always be the lowest, the advantages in service and support are significant.

How We Can Help

We collaborate with numerous reputable lender partners. If you’re contemplating buying a home, initiating the process with a reliable lender is crucial. They can help assess your buying power and explore available programs. Feel free to call, text, or contact us for lender recommendations tailored to your needs.

Choosing the right lender is an essential step in securing your dream home. With the right guidance, you can navigate this aspect of the home buying process with confidence.

nline Lender Pros

The benefit of using an online lender is that they usually have decent rates and they’re lightning fast when it comes to delivering pre-approvals. Speed is their appeal. When you fill out one of their forms online, they’re usually calling the second you’ve hit submit.

Online Lender Cons

But there’s a reason why they’re so fast…. Online lenders are like factories. They deal with cookie cutter loans like a champ, but if you need extra counseling or if you don’t fit neatly into their wheelhouse, then they aren’t the best option for you.

In Summary…

If you have any extenuating circumstances, an online lender may not be the right choice for you. This includes first time home buyers, buyers with short sales and foreclosures on their records, or buyers who’ve served in the military.

We work with lots of amazing lender partners. If you’re thinking about buying a home, start with a good lender who can help you determine your buying power and what programs are available to you. Call or text us anytime… Or contact us, so we can send over some recommendations!

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