When it’s time to finance a home purchase, it’s common for borrowers to narrow down their options between two places, a private lender or a big bank. The best fit for you always depends on your unique home buying scenario needs, including your finances and future goals.
We believe helping our clients make knowledgeable decisions sets our borrowers up for their greatest success and is what continues to distinguish us as a lender. Understanding how funding fits your needs and also providing the guidance that assures you through this process is a vital step when you are ready to purchase a home or investment property.
We hope that this blog on the pro’s and con’s of private lending vs. big bank loans helps you have the confidence you need to move forward with your financing. We are always here to answer your questions so please feel free to comment or reach out and let us know how we can help you take the next step towards your goals.
Big Bank: Pros and Cons
Most people have accounts through larger banks and naturally start there because of being heavily marketing when they cross paths with their bank. The problem here is that the bank is attempting to maximize their revenue by promoting products, such as additional checking or savings accounts, credit cards or other products in exchange for more favorable lending terms. This process doesn’t always have the customers best interests as the focal point, but is looking to magnify the bank’s revenue. Banks are also known for offering mortgages with stricter lending terms because they have tougher federal compliance, making it harder to obtain lending if you’ve experienced foreclosure, bankruptcy or just have less than stellar credit.
Private Lender: Pros and Cons
Flexibility and timeliness continue to be a strength of private lending. Borrowers are able to receive customized lending options that fit their precise needs. Additionally, private lenders are required to pass several mortgage-related courses and exams, giving them an in-depth knowledge that benefits the borrower. One downfall of a private lender is if you end up going the online route and prefer more interaction. That experience can easily be different though if you work with a lender who is available to meet in person and walk you through your specific needs.
All companies have their own strengths and weaknesses and it’s important for you to weigh your options. Big banks may have a comfortable feel to them but they often have many different lending branches far beyond just mortgages. At private companies, and specifically here at West Coast Mortgage Group, we focus only on mortgages, which means this is our specialty. It also means we are constantly expanding our lending products allowing us to serve a greater depth of clients, even those facing credit challenges.
We value working with our clients as they prepare to take steps towards home ownership and appreciate the entire process. We know it takes hard work to reach the moment when you’re ready to make that purchase and we understand how important this decision is for you. Let us know how we can help make your home ownership dreams become a reality!