Taking out a mortgage for a new home will always be a big life decision.
With interest rates still near historically low levels, potential buyers on the fence about purchasing a home may feel now is the perfect time to make such a move.
Yet, when taking out a mortgage, you have to take into account more factors other than interest rates, whether you want a fixed-rate loan or if you should go with the 30-year option.
You also have to think about where you'll go for that mortgage. And for that, you should go to a local financial institution, such as Landmark Bank, for your mortgage.
The different types of lenders
Mortgages are offered by a variety of institutions. Some home builders and real estate agencies have an in-house mortgage division to try to appeal to you.
Then there are the mortgage brokers. Essentially, these companies act as middlemen. Their goal is to try to match you with a loan that suits your needs at the best price. Once you find a good deal, you will have to go through the loan approval process, and after that, you'll deal with the loan originator or mortgage service provider, not the broker.
The final category of mortgage providers are the direct lenders. These are your non banks, mortgage banks and regular banks that all offer mortgage products. This process involves an application and the bank then decides if you qualify to take out the loan.
Benefits of direct lenders
For the average buyer, direct lenders provide many benefits, starting first with reliability. If you're going to a bank, it's because you're already a customer and trust the institution.
Additionally, you're able to simplify the homebuying process because it's essentially a one-stop shop for all your needs. You already know and trust the service, so you can expect the same when taking out a larger amount of money.
But unlike mortgage brokers or in-house divisions, direct lending means you're dealing directly with the lender. There's no middleman to deal with. Involving more players in the process may increase the chance of something being messed up along the way, such as important paperwork being misplaced.
Speed is another positive of working with a direct lender. With the recent news that the Federal Reserve will not raise benchmark interest rates, you still have time to secure a favorable rate. However, this will not always be the case because the Fed did hint at a hike occurring before 2016 ends.
By working with a direct lender, your loan application is able to be processed faster, thus allowing you to buy a home before a potential rate hike.
Why you should go local
Landmark Bank is a direct lender, and if you're looking for a mortgage, we're here to help. We offer the following mortgage products that might be of interest:
- Balloon loans (suitable if you know you'll be moving)
- Investment property (for that vacation home you've always wanted)
- Federal Housing Administration loans
- Veteran's Affairs loans
- Department of Agriculture loans
- Freddie Mac Home Possible Real Estate loans
Whether you're a first time buyer or not, Landmark has a product to meet your needs.
"We'll work hard to help you through any hiccups in the process."
But it's not just about the product; it's also about the service. By staying local and with a bank you already have a checking and savings account with, you know we'll work with you to find the best possible deal. We know the local market conditions and will help you buy that perfect home.
Most importantly, however, is the level of customer service you can expect when heading to Landmark Bank. We know our customers and care for them, something brokers can't always guarantee.
And when the going gets tough, we'll work hard to help you through any hiccups in the process, whether there's an issue with the home or you're facing financial difficulties.
For more information about smart ways to manage your finances, contact Landmark Bank.
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