HOW TO CHOOSE A LENDER TO FINANCE YOUR HOME

The type of lender you choose can make or break the sale of your next home. I’ve seen sellers reject offers and escrows crumble to pieces because the buyer chose the wrong lender. So it’s really important to choose your lender wisely. In this article, I’ll show you how it’s done!

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THERE ARE 3 TYPES OF LENDERS IN THIS WORLD…

  1. Big Banks

  2. Online Lenders

  3. Direct Lenders

ALL ABOUT BIG BANK LENDERS

Big Banks are the ones you see on every street corner, grocery store, and ATM. These are the banks where you deposit your money, pay bills, and cash checks on Christmas.

BIG BANK PROS

The benefit of using a big bank is that they often have the best rates. However, these interest rates usually come at a cost.

BIG BANK CONS

But big banks have a lot of work to do when it comes to customer service, response times, organization, and speed. Big banks usually don’t work on nights and weekends and have multiple people touching the account all at once. These factors not only create slow response times, they also create confusion in the transaction when buyers need clear answers the most.

IN SUMMARY…

If a seller needs to close escrow and be out of their house as soon as possible, depending on a big bank to get their act together could be a deal-breaker for that seller. So if you happen to be lured in by an unbelievably low-interest rate, just know that a seller may frown upon your decision, and everyone in the transaction may have a few more gray hairs when it’s all over.

ALL ABOUT ONLINE LENDERS

Online lenders are the ones you see advertising at the top of Google when you start searching for a home loan.

ONLINE LENDER PROS

The benefit of using an online lender is that they usually have decent rates and they’re lightning fast when it comes to delivering pre-approvals. Speed is their appeal. When you fill out one of their forms online, they’re usually calling the second you’ve hit submit.

ONLINE LENDER CONS

But there’s a reason why they’re so fast…. Online lenders are like factories. They deal with cookie cutter loans like a champ, but if you need extra counseling or if you don’t fit neatly into their wheelhouse, then they aren’t the best option for you.

IN SUMMARY…

If you have any extenuating circumstances, an online lender may not be the right choice for you. This includes first time home buyers, buyers with short sales and foreclosures on their records, or buyers who’ve served in the military.

HOW I CAN HELP…

I work with lots of amazing lender partners. If you’re thinking about buying a home, start with a good lender who can help you determine your buying power and what programs are available to you. Call or text me anytime… Or contact me anytime, so I can send over some recommendations!

FROM BEACH TO BAY CALL KIM K

443-523-2855