Choosing Your Lender

Which Type Of Lender Is Right For You?

There was a time when almost all home buyers obtained their mortgage loans through their bank or credit union.  Today however there are a number of additional home financing providers. Which type of lender is right for you?  Let's take a closer look at 4 options!


Community Banks
A bank or typically your local home town bank, is a direct retail lender.  In other words, the bank's employees alone review your application and make the decision to lend you money.  In almost all cases the bank will hold your loan on their books for a short time.  

Benefits of your local community banker:
  • Reliability:  You probably know and trust your local banker.  It is regulated by state and federal agencies and likely has strong ties with your community.
  • One-stop shopping:  You deal directly with the source of your loan.
  • Savings:  As the loan originator the bank may save you money in the loan process due to your total assets on deposit with the bank.
Risks of your local home town banker:
  • Limited choice:  Bankers generally only offer their own programs.  To comparison shop, you need to speak to several lenders.  This can cost you valuable time and money especially when interest rates are rising.
  • Interest rates:  Due to very strict lending guidelines, credit score requirements, and with limited loan programs bankers may not offer the most favorable interest rates.
  • Terms:  Typically short in duration 3 to 5 years.  For a mortgage this short term will likely result in having to refinance the loan at a later date when interest rates may not be as favorable.
Mortgage Bankers
A mortgage banker like a community bank, is a direct retail lender.  In other words, the bank's employees alone review your application and make the decision to lend you money.  In almost all cases the bank will house your loan or sell it into the secondary market.  Also the mortgage banker may serve as the secondary lender and purchase loans of other correspondent lenders.

Benefits of a mortgage banker:
  • Reliability:  You probably know and trust your local mortgage banker.  It is regulated by state and federal agencies and likely has strong ties with your community.
  • One-stop shopping:  You deal directly with the source of your loan. 
  • Savings:  As the loan originator the bank may save you money in the loan process due to your total assets on deposit with the bank.
Risks of mortgage banker:
  • Limited choice:  Mortgage bankers generally only offer their own programs. To comparison shop, you need to speak to several lenders.  This can cost you valuable time and money especially when interest rates are rising.  Also should your loan get turned down due to secondary market credit overlays then you will have to start over with a new lender.
  • Interest Rates:  Due to very strict lending guidelines, credit score requirements, and with limited loan programs bankers may offer the most favorable interest rates.
  • Terms:  Loan terms are typicaly from 15 to 30 years in duration.
Traditional mortgage Brokers
A mortgage broker is a wholesale lender who may represent the mortgage loan programs of hundreds of different wholesale lenders.  The broker's goal is to match you with the loan program that best meets your needs at the best price available in the market.    

Benefits of a mortgage broker:
  • Variety:  By shopping across a range of different programs and lenders, a mortgage broker may find a better fit for your needs than your local banker.
  • Qualifying:  A mortgage broker can offer your application to several national or regional lenders that are most likely to accept your application based on your financial and personal information.
  • Savings:  You may get a more favorable loan rate.
  • Speed:  A broker saves you time shopping for a loan.
Risks of a mortgage broker:
  • Hidden costs:  Some mortgage brokers may attempt to increase their profit by writing hidden costs into your loan.  The best hedge against this is to ask lots of questions.

Non-Traditional Upfront Mortgage Brokers®

Like traditional mortgage brokers, Upfront mortgage brokers offer the same benefits without the possibility of hidden costs.  Upfront mortgage brokers abide by the Upfront Mortgage Brokers® Commitment.  This commitment assures that the broker will endeavor to act in the best interest of the borrower.  Upfront Mortgage Brokers® give their borrowers pricing upfront that will not change at closing!


Communities currently served in the state of Georgia include the following: Albany, Atlanta, Bainbridge, Cairo, Camilla, Thomasville, Valdosta, Moultrie, Macon, Jonesboro, Duluth, Marietta, Savannah, Norcross, Decatur, Sandy Springs, College Park, Roswell, Smyrna, and Stone Mountain.


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