Of Lenders and Banks: 3 Reasons to Choose Lenders for Mortgages

Lender handing out new house key

Lender handing out new house keyBanks can be found everywhere, which makes them accessible options for people who need loans. Still, there are other entities that are just as accessible and able to match the services offered by banks.

For instance, you can go to a mortgage lender, which can grant you a loan once you’ve pledged your property as collateral. These lending groups are arguably more lenient than banks, which are often bound by their rules and investors.

Here’s a detailed look at why lenders are better than banks.

1. Approvals Made Quicker

Residential mortgage lenders explain that the independent nature of lending groups can make them approve loan applications quickly. As banks service many clients while attending to their investors, they might have their hands full at certain times. This could delay applications for mortgages or loans, and time spent waiting could’ve been time spent going to a lender instead.

2. Lenient Payment Terms

Banks are strict with their payment terms, while lenders are more lenient with the matter. If you’re struggling to pay off a loan or mortgage, a lender might adjust the payment schedule so you can pay without losing funds for your other needs. A bank typically doesn’t have this feature because of certain rules in place.

3. Real Estate Considerations

Some banks might decline your mortgage application if they see that the property you pledge has issues in plumbing, wiring, and many other things. They do this because of their rules, or they’re simply too busy to cater to these property issues. Mortgage lenders, on the other hand, can be considerate about these things because they specialize in handling houses and lands.

Mortgage refers to loans involving properties that are pledged as collateral. You’d have to repay the loan to get these properties back, and banks might not even grant you a mortgage loan if your property is problematic. Thanks to lenders and their independent nature, they can be flexible with payment terms, approve applications quicker, and could even fix issues with the property in the mortgage.