In your quest to become a happy homeowner, you’ll not only have your choice of homes to choose from, you’ll also have your choice of mortgage lenders who can provide you with your mortgage loan. Before you make your current bank or any other bank your primary choice for a lender, you may want to branch out and explore your other options. Wyndham Capital Mortgage wants you to understand a bit more about why a bank isn’t always the right choice for your home loan.
Mortgage Rates in Terms
If you’re already shopping around for your mortgage, you may already be well aware of the variances in mortgage terms and rate comparison between different lenders. While it’s not entirely impossible, chances are good that a regular bank doesn’t have the loan terms and rates you need to save the most money on your mortgage. Even a small variance can add up to a significant amount of money over the life of your mortgage. You don’t want to find out seven years into your loan that you would have been better off accepting that home loan offer you received from a mortgage bank with a one percent difference from the offer you accepted from your bank.
Related: 5 Types of Mortgage Loan You May Qualify For
Lack of Proper Industry Knowledge and Training
Depending on the banks you’re exploring, the individuals handling your bank mortgage loan may not have the most up-to-date knowledge concerning mortgages and the home loan process. This lack of information could spell disaster for your mortgage and your future finances. Mortgage banks specialize in nothing but mortgages, which can’t be said of banks that offer various loan programs. This niche focus means that mortgage banks dedicate themselves to knowing the most current mortgage trends, laws, rates, and changes.
The Length of the Loan Process
You’ve got to strike when the homeownership iron is blazing hot, otherwise, you cool your chances of snatching up your dream home. When a regular bank is at the helm of your mortgage ship, it may feel like you’re sailing through a sea of chilled molasses. While it’s normal for there to be a wait time while your loan is processed, that time can drag on longer than necessary (or bearable), which could easily result in you losing your home to a buyer who had a faster loan process.
Down Payment Requirement
The type of lender taking care of your mortgage also determines how much you’re expected to contribute as a down payment. One lender may require a 10 percent down payment while another may only ask for five percent for the same home asking price. What’s more is there are new loan programs with down-payment requirements of only three percent for borrowers with good credit. Such programs may not be an option if you’re dealing with a regular bank. While it’s a good idea to save up as large of a down payment as possible, that’s a lot easier to do if your requirement isn’t very large to begin with.
Related: 3 Ways To Avoid a Home Loan Rejection
More Loan Programs for Your Consideration
Banks want your business, which means they’re unlikely to tell you about loan programs and options they don’t have but other lenders do. You could be under the impression that a bank home loan program is the ideal option and the right fit for your particular circumstances only to learn later that there’re a few other options offered by mortgage banks that are exactly the type of mortgage you need. You’re less likely to feel as if you’re settling if you know every type of mortgage program there is for the taking.
It truly pays to shop around when it comes to your mortgage loan. While banks are certainly plentiful, they may not have plenty of good options for your home loan needs. Click below to learn more about what options we can provide you.