The choice between a national and local mortgage lender depends on several factors. If you prefer a more personal touch and a view of the local market, a local lender may be the best option for you. However, if you value a wide range of loan options and wide accessibility, a domestic lender may be better suited. Local lenders know your area's market better than anyone else. That means they have a better understanding of the value of properties and the local economy.
When you work with a smaller local lender, you're assigned a licensed loan officer and a team of professionals who are experts in the region you're buying in. They will help you choose the right type of loan for your circumstances and will keep you informed throughout the process, ensuring that every step is done with care and concern. Most local lenders even have the tools and internal resources to expedite the processing of a loan, ensuring that everything is resolved with time off. Even if you're an experienced buyer, going local has its benefits.
No matter how many times you've been through the process, there can still be setbacks. Local lenders understand that customers are as unique as their fingerprints and will work to find a solution that works for everyone. They are more willing to go the extra mile to guarantee their customers a successful mortgage. If you prefer not to receive dozens of calls from brokers, you can search for them directly on sites that bring together local and independent mortgage brokers from all over the country. When a prospective homeowner is ready to seek a mortgage, they may decide to consult with a mortgage broker.
A good mortgage broker should be able to provide valuable information, such as which lenders lend money in certain areas, which offer a specific type of mortgage, and which accept or avoid loan applications for certain types of housing, such as cooperatives, condominiums or multifamily homes. As mentioned before, some lenders work exclusively with mortgage brokers and others work exclusively with specific lenders. Mortgage brokers once had an uncertain reputation, so it's no surprise that many people are still hesitant to use them. A mortgage broker acts as an intermediary by helping consumers identify the best lender for their situation, while a direct lender is a bank or other financial institution that decides if you qualify for the loan and, if you do, delivers the check.
For people who don't want to have to contact different banks, mortgage brokers are a better option. People who are less qualified buyers or who are buying less traditional properties will find it easier to find loans that they can be approved for through a mortgage broker than by turning to individual direct lenders, who often have stricter approval criteria. Mortgage brokers don't anticipate loans, but they do offer a one-stop shop with access to multiple lenders, while a direct lender is a single entity that eliminates middlemen. Investopedia's best overall choice for direct mortgage lenders is Quicken Loans, better known as Rocket Mortgage.
To do this, a mortgage broker meets with their clients to assess their needs and financial situation. As mortgage rate increases begin to stabilize (and may even slow slightly due to the abrupt rise from the lowest mortgage rates in history), they understand their individual needs. When working with a mortgage broker, it's a good idea to do a quick comparison to see if the rates and commissions they offer are truly competitive. Mortgage brokers tend to be more localized, so the best place to start your search is to ask friends, family and your real estate agent for recommendations.
Skipping hiring a mortgage broker may mean going through the application process with more than one. direct lender.
