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Mortgage Loan Lenders or Banks: Which Should You Choose?

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If you are in the market to purchase a home or refinance a home you own, you might be wondering where they best place to get a home loan is. There two primary options when it comes to home financing: direct mortgage loan lenders and banks. So what’s the difference and which is better choice for you?

 

Banks or Credit Unions

Your neighborhood banks or credit unions are one of the first places you’ll likely consider when thinking about choosing mortgage loan lenders. After all, you have your checking and savings accounts there, so why not your home loan?

Neighborhood banks, whether they are a local credit union or a national consumer bank, offer a variety of banking products to their customers. Checking accounts, savings accounts, retirement and investment products, student loans, personal loans, car loans, savings bonds, stocks, credit cards, home loans, and more. The benefit to most banks is that they are near your home and provide a convenient place to get a mortgage. 

However, there are downsides as well. Banks do not specialize in home loans, so their staff may not be as knowledgable as those of mortgage loan lenders. Their loan originators may also only be available at your nearest branch for limited hours each week, as bank loan originators tend to float from office to office. In addition, many banks sell off the mortgages they sell as soon as the I’s have been dotted and T’s crossed, which means that once you’re done with your loan, you may be doing business with an unfamiliar company anyway. 

Direct Mortgage Loan Lenders

Direct mortgage loan lenders such as NLC Loans are companies that specialize in mortgage loan transactions and only mortgage loan transactions. Because mortgage loan lenders only focus on mortgage transactions, their employees are specialized and highly trained in the mortgage industry. The loan originators also only work at the respective offices, so they’re very likely to be available to you when you need them. 

Direct mortgage loan lenders have offices throughout the country, but they can also work remotely. It is up to you whether you choose to work with a mortgage loan originator in person or over the phone. 

Not all mortgage loan lenders hold onto their loans after they are done funding them, but NLC Loans holds and services the majority of the loans they close. This means you’ll be dealing with a familiar name and a staff with which you are familiar, which may not happen when you get a mortgage through a bank. 

Get a Free Quote

If you are interested in hearing more about NLC Loans and would like a free home financing consultation, call one of our Personal Mortgage Advisors toll-free at 877-480-8050 or get a quote online today.