Financing the purchase of a home is likely to be one of the most important decisions and significant investments that most people will make in a lifetime. Shopping around can be a very critical part to ensuring that every need is meet by your financing company. Think about it, when job hunting or applying to college, people rarely set their sights on just one position or college. It’s foolish to put all of your eggs in one basket. So why put your life savings and emotional energy on a house purchase at stake by applying for a loan with only one financing company? Shop around, weigh all your options and examine carefully their programs and services. Then you can wisely choose a lender you feel is the best fit for you.

Below are the different types of lenders and the advantages and disadvantages that they carry:

 

Mortgage Broker- A mortgage broker serves as a matchmaker between the home buyer and the lender. The broker draws from a pool of wholesale lenders to find the best rate on a variety of products. This “middleman” approach has advantages of good rates and a variety of products but could lead to high fees and a flood of “red tape”. Since a broker usually doesn’t fund your loan (a 3^rd party does-meaning the lender he chooses) a broker handles your loan at application and typically sends your package off to a  3^rd party for final approval and funding. This generally puts the control on your final decision and closing timeline in the hands of some 3^rd party-hence, the “red tape”.

 

Banks- A bank, on the other hand, typically lends its own money. Their fees are generally competitive, but their rates sometimes compensate for this. Banks usually are limited in the products that they offer and even though it’s their money they are lending, most have to send your package off for a final decision at their mortgage headquarters. This “centralized processing and underwriting” can possibly lead to the same flaws as a mortgage broker-“red tape”.

 

HMC, Inc..- In 15 years, we have grown to be the largest independent retail residential mortgage lender in Alabama. We are a non-depository state bank-meaning we fund our own loans. We focus on one thing only and that is mortgages (not checking and savings like traditional banks). We’re highly competitive with brokers on rates, and highly competitive with banks on fees. We offer an unlimited amount of various programs to fit your needs from Fixed Rates, ARM’s, Interest Only Programs, FHA/government loans, 100% financing with no PMI to numerous Construction Loans. We handle your loan from application to closing in our office here in Fairhope, Alabama with unmatched service- No “red tape”. If something needs to be done, we find out immediately, not hours before closing thus making the home buying process as smooth and efficient as possible for our customers. All of this gives us the flexibility to think “outside the box” when it comes to finding the right product for your financial needs with personalized service. This is why we call ourselves a “Full Service Mortgage Banking Firm”.

 

No matter which route you choose, shopping around will ensure you the best fit for your needs. When shopping around remember to deal with someone who can offer competitive rates, competitive fees, competitive programs, and a range of options that suits your financial needs. Keep in mind that anyone can quote you a rate. What homebuyers should look for, and what distinguishes HMC., Inc. in this business is personalized service with “no red tape”.

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