Big banks don’t always come first.
Who says you can’t benefit from taking a mortgage from small lenders? These days, the competence of small lenders lies in their market niche, as they seek borrowers with special circumstances.
That’s right. Never limit yourself with the choices big banks and financial institutions have for you. If you shop around, you may actually find a mortgage that seems to have been tailored fit to your needs.
Among the advantages small lenders can provide are:
- easier access to loans when you reside in their locality
- availability of smaller loans to low- and middle-income homebuyers
- smaller down payments
- faster approval of mortgage applications
Small lenders have their setbacks too. Among these include:
- limited funds can be provided once your financial needs increase
- can be selective with the type of borrowers that they lend to
- more gullible to market adversities
- may ask the borrower to seek other sources of financing when maximum loan amount is reached
As an added tip, it would be best to settle for a lender with years of experience in the industry. In this way, you can assess how well it transacts long-term relationships with its borrowers.