We are proud to partner with Homeside for your home mortgage needs here at Promenade@5. Here are a few reasons why we choose them as our preferred lender on-site.
1. Lower Rates and Fees
Smaller mortgage lenders offer the same variety of products as larger banks, and sometimes you can take advantage of these products at a lower cost. Mortgage rates and closing costs vary from lender to lender with small lenders offering competitive—sometimes better—rates on different types of home mortgage loans. A lower interest rate can save you thousands over the life of a 30-year mortgage, and lower fees result in fewer upfront costs.
2. Faster Response Time
Big banks have a large mortgage department and these financial institutions can receive dozens of home loan applications a week. That’s a lot of paperwork to sift through, and it can take loan officers and underwriters several days to review documents and get in touch with applicants. Smaller lenders typically have a faster response time. While a bigger lender may forward applications to another mortgage department or branch, small lenders make many of their decisions in-house. The person who receives your application may be the final decision maker.
It’s often easier to work one-on-one with the underwriter at a smaller bank. You can experience a higher level of personal attention and assistance, which is important if you need advice on how to turn a mortgage rejection into an acceptance, or if you need advice on qualifying for a better mortgage rate.
3. Specialized Financing
Just about every mortgage lender offers products, such as conventional, FHA and VA loans. There’s also the option of a fixed-rate or an adjustable-rate mortgage. Big banks offer a variety of mortgage options, but there’s often a shortage of specialized products. When you work with a community bank or another small mortgage lender, there are more opportunities for special financing.
4. Flexibility with Lending
The guidelines for getting approved for a mortgage with a big bank are pretty much written in stone and there’s very little you can do to change the rules. There’s an established minimum criteria, and applicants who don’t meet this criteria can’t qualify for a loan.
Small lenders, however, can often approve mortgages that have been rejected by larger banks. This is because their guidelines and criteria differ. Some small lenders keep mortgages on their books instead of selling these to Fannie Mae and Freddie Mac. With these agencies out the picture, the lender doesn’t have to follow their strict lending guidelines. This gives small lenders the ability to relax their guidelines and approve borrowers who don’t qualify elsewhere, perhaps due to challenging credit or irregular income. A borrower may have a low FICO score, but enough assets and income to support mortgage payments.
Our Homeside loan officer is coming on board very soon and we look forward to introducing them as part of the Promenade team.