When it comes to getting a mortgage to buy a home, your first decision is choosing a mortgage lender. From online-only lenders to brick-and-mortar banks and credit unions, today’s homebuyers have plenty of choices. However, more choice doesn’t always mean a better choice. How do you sift through your choice of mortgage lenders to determine what sets them apart from each other? And which type of lender is right for you? In this article, we’ll make the case for working with a full-service mortgage lender like CS Bank in Northwest Arkansas or Southwest Missouri. For more options and a more personalized mortgage loan experience, work with a full-service mortgage lender.
What is A Full-Service Mortgage Lender?
A full-service mortgage company gives you access to an entire team of mortgage loan professionals such as mortgage lenders, bankers, analysts, loan closers, and servicers.
This makes the application and underwriting processes easier. Instead of having to chase people down to stay on track, your loan application will automatically move from one phase to the next, with someone letting you know if you need to provide additional information or supporting documents. If any issues arise, our team of mortgage loan professionals have the experience and expertise needed to deal with it quickly and conveniently.
When you choose a full-service mortgage lender that is also a community bank, like CS Bank, you can benefit from local decision-making. Our mortgage lenders possess local expertise into the Northwest Arkansas and Southwest Missouri real estate markets where you’re looking to buy your first home or your next one.
Finally, full-service mortgage lenders tend to offer more products and services, such as fixed-rate conventional mortgages as well as state and federal mortgage loan programs. We’ll also take the time to talk through your financial situation and goals for homeownership to help you find the best home loan option for you.
Full-Service Mortgage Lenders vs. Other Types of Lenders
To help you decide if a full-service mortgage lender is right for you, let’s compare this option to the other types of lenders out
there.
Mortgage Broker
- Mortgage brokers are a type of licensed mortgage professional.
- Brokers are not lenders themselves, but act as an intermediary between you and mortgage lenders.
- A broker takes your mortgage application and personal documentation to shop around on your behalf for the best rate and terms on a mortgage loan.
- Brokers can review your credit report and financial situation with you to help you make any needed changes before applying.
- Mortgage brokers typically charge you a fee for their services and also earn a commission from the lender you end up choosing.
- Once a mortgage broker hands you off to a lender, they can’t help you with processing time or even guarantee a final approval.
A full-service mortgage lender can provide the same credit counseling and financial review services as a mortgage broker, without charging a fee for their services. Full-service lenders may not shop around for you, but they will strive to get you the best possible rate you can qualify for. And they will be with you through the entire process from application to closing day.
Direct Mortgage Lenders
Direct lenders tend to operate online-only and focus solely on mortgage loans. While they also provide a full-service experience throughout the mortgage process, they may not have physical branches for you to visit or local expertise in your real estate market.
Both direct mortgage lenders and retail lenders like CS Bank offer an online mortgage application and document collection option to make the process easier on busy homebuyers. However, you can further streamline your financial life by getting your mortgage from a retail lender who will also service the loan instead of selling it on the secondary market. With your checking and savings accounts, as well as your mortgage all in the same place, you can set up automatic payments and log into just one online banking platform to view all your account balances.
Mortgage Servicers
Not every mortgage lender keeps your loan in-house after it closes. When your loan is sold on the secondary market, it will be serviced by a different company.
A loan servicer sends your monthly statement, accepts payments, responds to your questions, and manages your escrow account.
Typically, full-service mortgage companies keep your home loan in-house and service it throughout the life of the loan.
What Are The Benefits of Working With A Full-Service Mortgage Company?
As you can see, choosing a full-service mortgage company will give you access to many of the same benefits other types of lenders offer, plus more:
- Access to an entire team of lenders with expertise in different home loans and real estate markets.
- More personalized service with a focus on finding the best mortgage loan option for you, not just the best rate.
- A full menu of financing options from conventional home loans to federally-insured mortgage programs.
- When you work with a local bank with a full-service mortgage department, you get local experts who know the area and know the market.
- Full-service lenders have extensive experience with properly structuring home loans.
- Life-of-loan service so you can always expect the same personalized service if any issues arise while you have your mortgage loan.
What Types of Home Loans Does A Full-Service Mortgage Lender Offer?
A full-service mortgage lender can help you choose from a complete list of home loan options such as:
- Fixed-Rate Mortgage: The interest rate you get upon your mortgage approval is the rate you’ll have over the life of the loan. Fixed-rate mortgages are popular for their stability and predictable monthly payment amounts.
- Variable-Rate Mortgage: Terms can vary, but ARM loans usually offer an introductory period with a lower-than-average fixed interest rate. After the intro period, your interest rate can go up or down depending on the benchmark.
- Short-Term and Long-Term Mortgages: Choose between a 15, 20, or 30-year mortgage loan term to best meet your budget and long-term goals.
- VA Loans: Eligible service members and veterans can receive up to 100% financing for a home purchase without a private mortgage insurance requirement.
- FHA: Partially insured by the Federal Housing Administration, this mortgage loan is popular with first-time buyers because of its low down payment requirements and more flexible credit qualifications. Mortgage insurance is required.
- Rural Development Loan: Favorable terms are available to homebuyers who meet certain income and geographic requirements.
- Construction Mortgages: Short-term financing to cover the costs of purchasing land and building a new home.
- Jumbo Loans: An option for homebuyers who need to borrow more than the conforming loan limit.( See our Guide to Jumbo Loans)
- Home Equity Loans and Lines of Credit: Leverage the equity you’ve built in your home for affordable financing to pay for renovations, a college education, refinance higher interest debt, and more.
- Mortgage Refinance: Has your credit improved since you first got your mortgage loan? Have interest rates fallen? Refinancing your mortgage can save you money on interest, allow you to change loan programs or terms, or convert some of your equity to cash.
- Reverse Mortgages: For homeowners age 62 and up who want to access their home equity.
- First-time Homebuyer Loans: Some full-service mortgage lenders offer programs and incentives specifically for first-time home homebuyers.
Finally, full-service mortgage lenders also offer non-residential loans in their service offerings such as commercial mortgages and ag real estate loans.
Work with a Full-Service Lender in Northwest Arkansas or Cassville, Missouri!
Looking to buy a home in Northwest Arkansas or Southwest Missouri? CS Bank has a full-service mortgage division, CS Home Mortgage, with offices conveniently located in Harrison, Huntsville, Holiday Island, Eureka Springs, Berryville, AR and Cassville, MO. Learn more about our mortgage loan options, contact our mortgage lenders, or apply for a mortgage online!