Pros & Cons of Financing with a Mortgage Lender

by Rose Wolkins 01/10/2021

Photo by Helloquence on Unsplash

When financing a home purchase, one of the most basic decisions to make is where to get your mortgage from. The basic options are whether you should go to a mortgage lender or not. Financing with a mortgage lender has both pros and cons.

Pro: Many Loan Options

If you go to a mortgage lender, you’ll find that they offer a great amount of choices. These are essentially brokers for various underwriting companies, and they offer many loan options. You’ll also have a wide variety of mortgage setups to choose from. Whether you want a 15-, 30- or 40-year fixed or some sort of variable loan, you can likely find it through a lender.

Pro: Might Be Able to Negotiate

The choices that mortgage lenders provide sometimes make it possible to negotiate with potential lenders. If you can pit multiple lenders against each other, you might be able to get a lower interest rate or complimentary points on your loan. A lender might even try to negotiate on your behalf.

Pro: Knowledgeable Guidance

At a mortgage lender, you’ll work with a loan officer whose sole job is to help homeowners find mortgages. They’ll be knowledgeable and able to provide you with informed guidance throughout the loan application and selection process.

Con: Might Not Be Local

Should you shop loans with a mortgage lender, it might not be someone local to your area who’s providing assistance. Often mortgage lenders service people across a state and even maybe in multiple states. As a result, there’s a good chance you won’t ever meet them in person.

Con: Might Sell Your Loan

Ultimately, mortgage lenders are in the business of underwriting and managing mortgages -- and that’s not necessarily the customer service business. If a lender deems it financially prudent to, they’ll sell your loan to another lender. Not only will you not deal with the same person or office, but you might not even deal with the same company down the road. Since mortgages last many years, there’s a chance yours could be sold multiple times.

Finding a Mortgage is a Personal Choice

A mortgage lender may be a good option if you’re looking for a great deal on a home loan, but they don’t offer a personal touch. If you want someone in your area and prioritize personal service, a credit union or other more local institution might be a better alternative for you. The decision to go through a mortgage lender or another place ultimately depends on what type of experience you want.

About the Author
Author

Rose Wolkins

REALTOR® Rose Wolkins has been building a long list of satisfied San Diego home buyers and sellers since she began her real estate career in 1988.

Her motto “Building lifelong relationships one home at a time” exemplifies both her attitude and the care and commitment with which she serves each client. It all begins with communication – in listening well, being readily available to answer questions, and keeping clients fully informed throughout their transactions. She’s also known for staying one step ahead of things, so she can keep transactions on track and address issues before they become problems.

Always striving to do the best for her clients, Rose stays current with changes in laws and technology through taking numerous classes throughout the year. She also stays current with the ever-changing San Diego housing market.

While she thoroughly enjoys using her advertising, photography, staging, marketing, and negotiating skills to successfully sell her listings, her favorite part of the business is handing overjoyed buyers the keys to their new home. She loves sharing the joy.

In addition to supporting her clients, Rose supports the real estate industry and was voted chairperson for the North County Real Estate District Coordinating Committee several years in a row. Voted a 5 Star Top Real Estate Agent for the past several years and now again in 2020, she’s also a member of the Women’s Council of Realtors.

In her free time, Rose enjoys reading, gardening, exercising, using her considerable photography skills, and spending quality time with friends and family. When you’re looking for a San Diego agent who knows the territory well and who will dedicate herself to turning your real estate goals in to reality, take this advice from her past clients: “Call Rose Wolkins.”