5 Reasons to Think Small: The Case for the Smaller Lender
Is it time to look for a lender for your mortgage or refinance needs? It’s easy to think Big Bank when you see one sitting on every corner – their presence is difficult to ignore. However, there are at least five excellent reasons to consider a smaller lender before making that decision on your home purchase or mortgage refinance.
Rates: Everyone is talking about record low interest rates, but borrowers may find even more competitive rates and lower fees with a small lender than a large bank can provide. This can mean a savings of thousands of dollars over the life of a mortgage, as well as less costs up front. It’s worth shopping around for.
Flexibility: Most banks have strict guidelines that must be adhered to in order to qualify for a loan. More often than not, they won’t touch a borrower with a low FICO score or irregular income even if assets and total income support the decision. Small lenders have more flexibility and can often approve those the banks pass on. Some of them are able to keep the loans in house, thus bypassing the Fannie Mae and Freddie Mac programs and the strict criteria that the agencies follow.
Time: Anyone who’s ever dealt with a big bank knows the many hoops a consumer is put through. There’s a plethora of paperwork and multiple loan officers and underwriters involved with reviewing and approving docs, compounded by all the other borrowers in line for loans as well. It all adds up to a delayed response and slower closing which can be frustrating when time is of the essence – especially true in the case of a cash-out refinance or real estate investing, for example.
Specialty Loans: Large financial institutions may offer the usual mortgage choices like Conventional, VA and FHA loans, however, a small lender often has specialty products appealing to a broader base of borrower. These can include bank statement loans and asset loans with more flexibility, as mentioned before.
Personal Touch: Personal service is an obvious, but vital benefit of working with a smaller lender like EnTrust Funding (ETF). Borrowers don’t have to deal with a different person every time they follow up on their transaction. We offer more flexibility and options, while being competitive. And EnTrust will get to know an individual’s situation and needs, then make decisions that best serve both parties – not just the bottom line.
Even if you have an existing relationship with a larger bank, it’s good to know there are alternative solutions for your mortgage and refinancing needs. Small lenders like EnTrust Funding fill a valuable niche, providing five vital elements the big boys can fall short on: competitive rates, flexibility, timeliness, specialty products and most importantly, personable service with a strong commitment to your financial success.