Home loans are very common in real estate due to the amount of expenses we have in our modern world and a call on our limited resources. However, we have recently seen homes being purchased with cash, but it is still not the overwhelming amount of homes sold compared to mortgages.This knowledge has gotten me thinking about what most people don't know about home loans and the companies that sell them. That is right a company is willing to sell you a loan, they are not family that is not expecting a rate or return for putting up the money to buy your house. What follows are my opinions good and bad about the type of home loan comapanies.
I have been both a home buyer and realtor and what I have learned is this... just like buying from a local retailer buying from a local lender can be more expensive or have other negatives. Sometimes the local company is perceived as where the wealthy go to bank, thus keeping the vast majority of home buyers from seeking to purchase a home loan from them. There are also stories of them only lending to the wealthy, when in reality it is the people that have higher credit scores. Having a higher credit score only means that you were responsible with your money, not that you are wealthy. Finally they have limited hours that you can reach someone...well that is true just about anywhere that you are seeking sales or service. The best thing I have to say about local lending institutions is this only a handful of people working for you to get the loan processed. If you have questions you know whom to call and when they will answer or return your call.
With large scale lenders; i.e. Quicken, Bank of America, and others you are still buying a loan, but you may have many people working on you loan. More people generally make more of a mess, leaving you the buyer of the loan looking for service. These companies lack service, so do many of the large retailers in America, however they are normally more willing to work with good or even poor credit. Really like everything in life you get what you pay for.
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