Is it better to use a bank or private company as a lender?

Depends on the situation. Does your mortgagee have all the perfect critieria? Is it a flip or a long term? If long term, then probably a standard company is best. Do they have questionable credit, any other issues? Private may be the way to go. But remember if your client is higher risk most likely there will be a higher interest rate and higher deposit.

Most banks and Mortgage companies are governed by the guidelines of the loan products:
VA-Veteran Loan Program
Conventional - better rates due to better credit scores and Assets
FHA - Government loan with slightly higher rates and more lenient Debt to Income (DTI) parameters with less assets required
USDA - Rural loan program with 100% financing. designated to build up smaller rural areas.
Find someone you enjoy working with!!

Often you should be able to ask a real estate agent for some suggestions, and they should give you at least 2 - 3 lenders. Some specialize in speedy response, personalized contacts, or trying to give you different approaches depending on how much money you are putting down on the purchase.

It's worth sending a few emails or calls to see which might fit your needs best.

I totally agree with Cagdas Agar. I work with keller Williams and we have a few loan companies that we rely and work with.The process goes as smooth as a slide and I have even seen closings in 10 days in unique cases . If interested I can connect with some reputable loan officers that master in honesty and credibility .

Your very own real estate and Health advisor
imranaY Hamdi MD;MPH
7654909206
ihamdi@kw.com

One key piece of criteria I use when screening lenders is "DO THEY CLOSE ON TIME?". It won't matter if the lender or banker gives you the sun moon and stars and has a friendly personality or has decades of experience in this business, or has any other accolades, if they DO NOT HONOR THE CLOSING DATE ON THE CONTRACT! I've had wonderful experiences throughout my career with both banks and mortgage brokers, and the best experiences with local Texas correspondent mortgage brokers, who were organized and created a calendar of contract deadlines and provisions that they kept strict adherence to. Also, you can ask any lender where their "underwriters" are located. Many local mortgage lenders office together with their underwriters (that's the best situation), others ship their files out to an underwriting office located outside of Houston, or even outside of Texas. Your Realtor can direct you to lenders he/she has worked successfully with; and that's a good place to start. Hope this helps.

Wilbert

The term better is a matter of preference. From experience often a mortgage broker can close quicker, and is more accessible (i.e. weekends or evenings) than a bank. If you use a mortgage broker your loan will eventually be sold to a large bank to manage your loan (i.e. who you would send payments to) such as Bank of America, Wells Fargo etc. If you are currently working with a Realtor, they are usually a good source to obtain names of some quality lenders. You mentioned closing costs. If you are in need of closing cost contributions you can check the Texas Affordable Housing link below to see if you qualify for down payment assistance. If so, you can also see which lenders participate in the program (not all do). Ask any lender questions and don't just compare rates, but also fees, how long it takes for them to typically close on homes, availability etc. Best of luck on your venture towards home buying. Let me know if I can be of further assistance

Hi Wilbert,

Private lenders are usually faster than the banks, and if they pre-approve you it means very high probability your loan will pass through the underwriter provided that property has met the loan-lender criteria and your financials have not change. Banks they will usually take longer to clear to close even though they can provide the pre-approvals. You might have surprises as they might change the status of the loan as the chain of work is longer and complicated than the private lenders.

It is also very understandable from consumer stand point. Buying a house is a big investment and you want someone you can trust and at the same time with best options. Contact me I can provide you some loan officers who can help you to have a rock solid transaction.

Thanks and Regards,

Cagdas Acar
832-283-1091
acarster@gmail.com
www.har.com/cagdasacar