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What Is a Direct Lender and Why Should I Use One?

September 2, 2021

What Is a Direct Lender and Why Should I Use One?

It may surprise you, especially if you are a first-time homebuyer, that you don’t have to get your mortgage loan from a big bank, credit union, or mortgage broker. There is a better option, called a direct lender. Read on as we break down what a direct lender is and why using one for your mortgage is a wise decision. 

What Is a Direct Lender?

A direct lender is exactly what it sounds like — a direct mortgage source that offers end-to-end loan servicing in-house. Direct lenders handle everything from analyzing your creditworthiness to handing you the check to purchase your home. 

Advantages of Using a Direct Lender

Working with a direct lender provides many benefits, including the following. 

Potentially Lower Fees 

There are always fees associated with obtaining a home mortgage, but mortgage brokers often charge more than a direct lender does. A direct lender also has more flexibility to possibly waive certain fees altogether than mortgage brokers. 

Better Rates

Many people mistakenly believe that mortgage brokers can get the best loan rates for their customers. But, every lender uses the same information to determine interest rates, which means that a direct lender can often offer you the same attractive rates as a mortgage broker.  

Personalized Customer Service

As much as the people who work at big banks may want to provide personalized attention for each customer, they are so busy that it just isn’t possible. When you work with a direct lender, you generally have fewer points of contact, allowing for more streamlined communication. At The Mortgage Firm Gainesville, you are always guaranteed unrivaled customer service. Mortgages are the only thing we do, so we focus solely on you and your mortgage needs. 

Control of the Process

Working with a direct lender who is your one-stop shop for your mortgage allows your lender to have more control over the process. Because everything about your loan is processed in-house, there is potential for fewer mistakes, and you enjoy faster turnaround times than you would have with a mortgage broker. 

More Product Variety

A credit union can only offer a smaller handful of products. In contrast, a mortgage broker can offer more products but will generally recommend the product that will earn them the highest commission regardless of whether it is the best loan for you. 

A direct lender provides more personalized solutions to obtain the loan with the best options and rates for your individual needs. At The Mortgage Firm Gainesville, we listen intently to your financial history and your goals for your future and offer you the best possible product to ensure you are happy with your mortgage. 

The Mortgage Firm Gainesville Is Your Direct Lender 

The Mortgage Firm Gainesville proudly provides unparalleled customer service, competitive rates, and fewer fees than big banks, credit unions, or mortgage brokers. Even better — we are available 24/7 to assist you. We are passionate about educating home buyers like you to feel confident and empowered throughout the process. Contact our knowledgeable team today to find out how we can help get you in the home of your dreams.