Home loan features have significantly changed over the course of a financial crisis in 2008. With an increased share of 50 percent in 2017, non-bank mortgage lenders in Minnesota has become a new challenge to traditional mortgage banks.
Mortgage bank lenders have to increase MN mortgage rates and impose tight requirements in order to respond to a stricter underwriting prerequisite. However, this makes it more difficult for mortgage seekers to qualify for a loan. This gave private Minnesota mortgage lenders like Summit Mortgage an opportunity to help the people who have been turned away by the banks.
Ranging from large and online institutions to small, locally owned businesses, mortgage lenders offer several benefits that bank lenders can’t provide.
Lower Mortgage Rates & Fees
Bank lenders have a short list of mortgage options, including a “one-size-fits-all” method when it comes to fees and mortgage rates in Minnesota. With a lack of chance for a compromise, mortgage seekers turn to non-bank mortgage lenders. They are delighted by the fact that they can save thousands of dollars on their mortgage rates and fees during the course of the home loan.
After being turned away by bank lenders, mortgage seekers have a better chance to qualify for a home loan from a mortgage lender like Summit Mortgage. As a matter of fact, even a self-employed individual can have a chance to get a home loan from a mortgage lender.
Non-bank mortgage lenders have a faster approach, which shortens the process of the home loan approval. This allows the mortgage seekers to quickly come up with an offer on a house they want to buy.
Lower Down Payment
Mortgage banks usually ask for a 20 percent down payment on mortgage loans. The higher percentage works to the bank’s advantage as it ensures safer, less risky loans for the bank lenders given the fact that mortgage seekers have a lot more to lose if they default. On the contrary, non-bank mortgage lenders would normally require a 3 to 3.5 percent down payment. The lower percentage brings a better chance for first-time buyers and a lot of people to own a house, especially when they have been turned away by traditional bank lenders. The non-bank mortgage lenders have the expertise that allows for more mortgage options and helps you decide on the best option that suits your situation.
Expertise in Mortgage Business
Given that the mortgage lenders are focused on one financial service, which is the mortgages, and not on a variety of different services, they are more knowledgeable in every aspect of the mortgage business as compared to a bank’s loan officer. Their expertise can provide you with more home loan options that were seemed to be impossible and guide you as well to the best mortgage plan for your situation.
Enjoy the expert advice of a Minnesota mortgage lender like Summit Mortgage about the best option tailored to your unique situation at the most competitive rates. Their team of professionals can help you utilize your new mortgage as an excellent financial tool.