Private Mortgage Lenders or Banks – Which is Better?

When you’re in the market for a mortgage broker, you have many options. Whether you have perfect credit or blemished, large down payment or small, there are mortgage options for everyone if you know where to look.

When you need a mortgage, where are you going to go? What type of financial company should you choose, Private Mortgage Lenders VS Banks? Learn the pros and cons of private mortgage lenders vs. banks, and why some people might be better off with one or the other.

Your two most common options are banks and private mortgage lenders. Many people assume they’ll get the best deal at their local bank and don’t shop around, but there are many benefits of choosing a private lender. Banks typically have only a few mortgage programs to choose from. If you don’t meet their strict guidelines, you will not qualify for a loan. This minimizes the target audience for most banks, making it accessible only for those with great credit and low debt-to-income ratios.

How Private Mortgage Lenders are Different

Private lenders are specialists in mortgage loans that typically don’t offer other banking services like checking accounts and IRAs you find at a bank. Instead, they focus on mortgage loans, which work to your benefit if you’re looking for a mortgage.

Private lenders often have more choices than your standard conventional, FHA, or VA loan. They offer those loans, of course, but they have other options too. Many private mortgage lenders have specialty loans that help borrowers in unique situations that a standard bank would likely turn down.

Why Choose a Private Mortgage Lender?

You may think going to your local bank where you already have a banking relationship is the best idea. For some individuals with great credit and a simple loan application, it may be the best option for them. For those with anything outside ‘the norm,’ private mortgage lenders offer many more benefits.

Mortgage lenders have more options and can work with uniquely qualifying situations. By trying to obtain a mortgage at a bank, if you do not fit in the ‘box’ it is likely you will not be approved for a home loan. Loan officers at a bank try to sell you the loan products they have, which even if you qualify, don’t always work in your best interest.

When you work with a private lender, here are some benefits you’ll enjoy:

  • Greater loan selection
  • Loan officers with a great deal of education in mortgage loans to help you make better financial decisions
  • More flexibility for matching you with a loan program, especially if your credit score or debt ratio is close to the required limit
  • Mortgage lenders must disclose how much they’re making on your loan, which gives you more negotiating power than you’d have with banks

Choosing Amerifund Corporation & Realty

If you’re looking for a mortgage lender with flexibility, plenty of loan options, and the highest level of customer service, consider contacting Amerifund Corporation & Realty in OC. You’ll get the best selection of loan programs, more flexibility in guidelines, and more hand-holding throughout the mortgage process. Your mortgage is one of the largest investments you’ll make in your lifetime, and it’s often a harder decision than choosing the house itself. Get the help you deserve and land in the right loan program that helps you make the most of your home investment. Call our staff today to do over any questions you may have regarding our home loan process and application.

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