When you’re shopping for a home, the first step is to shop for the right lender.

The mortgage industry has evolved considerably in recent years, with new products and services that make the process easier, faster, and more affordable.

The bottom line: you no longer need to lumber through an in-person, time-consuming paper trail to secure a loan. These days, you have options.

One big change in the mortgage industry is the growth in direct-to-consumer (D2C) lending. D2C lenders originate their own loans, eliminating the hurdles of a broker. Mortgage banks and credit unions can also be direct lenders, but there are differences to consider.

Niche focus

D2C lenders specialize in mortgages while institutions like credit unions offer a broad range of products. With a focus on home loans, D2C mortgage companies offer several perks:

• They’re nimble. D2C lenders tend to be more flexible about qualifying guidelines and alternatives for borrowers. Retail lenders that sell an array of products tend to have stricter underwriting rules.
• They’re tech-savvy. Unlike brick-and-mortar credit unions or banks, D2C lenders operate with a digital-first mentality, which makes the process more efficient. They often close loans faster, which usually saves time and cuts closing costs. And, because they’re built for the digital world, their loan officers are used to being available at any time—not just during bankers’ hours.
• They’re focused. Because D2C lenders specialize in mortgages, they’re immersed in the experience and in touch with industry best practices. For you, this means a lender who lives and breathes mortgages.

Competitive approach

Another perk: D2C lenders tend to be more competitive. Lenders who offer an array of products have a built-in financial buffer. Mortgage-only lenders can offer highly competitive rates.

Plus, it’s easy for borrowers to shop rates with D2C lenders. They tend to post rates transparently up front and online.

Before you take on a loan, shop around—even if you’ve been with the same institution for years. A mortgage is a big move and you deserve a lender who meets all of your lending needs.

Got questions? Reach out to one of our loan officers today—they’re excited and ready to guide you through the homebuying process.