top of page

What is the Difference Between Mortgage Providers?

The home buying process is often much more challenging than it may seem, primarily because it takes a great deal of commitment from the buyer and seller to ensure that you can close on time. While it is sometimes said that buying a home can be difficult, having an experienced mortgage provider in your corner can assist you in many ways while you are locating the perfect house. While many first time home buyers face barriers in the home buying process, preparing for the obstacles by selecting the right mortgage provider is one of the most important first steps to consider before looking to view a house or buy one. Therefore, let’s consider some options that you can choose from in order to make the right choice for you when purchasing a home.

What are the differences between mortgage providers?
Choosing the right mortgage provider for me

1. Traditional Banks

While it is likely the most obvious choice, a traditional bank can certainly function as a quality option when seeking a home loan. While traditional banks offer a multitude of different services in house, one of the best aspects about obtaining a mortgage from a tradition bank is that it allows customers to build a personal relationship with the person who handles the structure of their loan and their payments. Thus, having a relationship with your mortgage provider is often valued, especially by those who believe that trust and quality service matters in regards to one of the most meaningful financial transactions in one’s life.

While traditional banks do offer a range of considerable benefits, there are also some drawbacks to consider as well. Therefore, in some cases, one of the biggest disadvantages of traditional or “brick and mortar” banks is that they are known for charging higher rates and fees in order to provide the loan packages that they offer.

2. Online Lenders

While traditional banks certainly can offer a quality customer-oriented experience, online-only lenders can often offer a more transparent and simplified process for obtaining a mortgage. While you will still have to upload the same information to online lenders that you would with traditional lenders, such as your personal ID and credit score, the process can take place entirely online. However, if you don't have good credit and your debt-to-income ratio for your loan is too low, you may find it hard to get approved for a loan from some of the more popular online lenders like Rocket Mortgage and Loan Depot. Therefore, if you do not satisfy these online lender’s more specific criteria, it may benefit you to obtain a loan from another type of provider.

3. Mortgage lenders

A mortgage lender is engaged in the residential or commercial property sector of originating and/or financing mortgages. Often, a mortgage lender is only the originator of a loan, but another financial institution will provide the capital for the loan, thus “buying it”. Mortgage lenders typically give prospective home buyers a selection of mortgages that they can choose from including: fixed-rate, adjustable-rate, FHA, VA, military, jumbos, refinancing, and home equity credit lines. Depending on the situation of the individual, being given a variety of options to choose from when selecting a mortgage is often preferred. However, if you prefer dealing with one provider during the entire mortgage, and not have to worry that your loan will be sold to another provider, obtaining a mortgage from another source may make more sense for you.

4. Credit Unions

Much like that of a traditional bank, credit unions also offer multiple financial services under the same roof. While this certainly is a considerable benefit to some people, it is also worth considering that credit unions are less likely to sell your loan to other 3rd party sources. This means that you will be dealing with the same provider during the entirety of your mortgage and you will not have to worry about making payments to other companies each time your loan is sold. In addition, having more of a relationship with your credit union may positively influence your mortgage rate, closing costs, and loan origination fees, which are all considerable benefits to consider when choosing the right mortgage provider.

5. Mortgage Brokers

A mortgage broker is an agent that puts together the terms of several different mortgage providers, but they do not generate mortgages themselves. Based on the personal information supplied by the borrower and the interest rate and terms they need for their mortgage, a broker helps the borrower communicate with lenders in order to find the best possible match for them. The mortgage broker also collects the all the information required from the borrower and passes it along to the mortgage lender on their behalf. At closing, the broker receives a commission from either the borrower, the lender, or both, but typically makes the process much simpler and less time consuming for both sides.

I choose one of these options, can I still sell my home quickly

Regardless of the type of mortgage, whether your mortgage payments are on time or delinquent, or who your provider is, if you are looking to sell, Congressional Home Buyers can help. After speaking with one of our sales associates, you can get an offer for your property in a matter of minutes and receive a contract for sale in as quickly as 5 days. If you are interested, check out our website for more information, visit https// Our procedure is extremely quick and easy, and helps you save time and money!

Start today if you are interested and see what we have to offer!


bottom of page