Brick and Mortar vs. Online Lending-What do you prefer?
Buying a home is one of the biggest decisions a person can make—and in all reality, there is no easy button. Finding the right home is a daunting task! Whether you are in the process of buying currently or have purchased a home in the past, the mountain of paperwork may still be haunting you.
So what is the new trend in the home buying process?
As of 2016, the online lending community made a surge! It makes sense, as somehow our lives are becoming more and more busy with work, kids, etc.
Supposedly the shift in trends directly correlates to the smart phone savvy millennial home-buyers. As a millennial myself, I feel everything is based off of accessibility, but I still want the personal touch when I look into buying the largest physical asset/debt I take on. Maybe I am in the minority here? As we continue to see a shift in the way social media and marketing evolves it is pertinent to appeal to the masses, but is the mortgage process one that you want to make via an online lending company or a brick and mortar lender?
Let’s discuss a little further here.
Brick and Mortar:
The phrase, if it isn’t broke, don’t fix it comes to mind. Remember all that paperwork mentioned before? This is where it comes into play now. Apparently, the mounds of paperwork is just too much. It makes sense! You have to bring W2’s, pay stubs, bank statements, tax returns and profit loss statements in to the lender. The same goes for your spouse or co-borrower that is on the loan as well. But on the flip side of that, you have someone to walk you through the entire process and someone you can rely on for questions and feedback. Person to person interaction is irreplaceable and because everything is now online, I am even more interested in more of the face to face human interaction.
Online mortgage lenders typically are licensed in several states. This is very appealing! Most of these companies are not affiliated with a bank or are non-bank lending institutions. In turn, they aren’t held to the same federal oversight that a bank is so the process can be sped up, another appealing aspect!
Online lenders reduce that timely documentation headache discussed previously. It would seem with the online lending process, the turn around closing time is quicker too. As with brick and mortar mortgages, online lenders also have varying fee structures. Shop around and compare rate quotes when you are working with online lending. Remember, cheaper is not always better.
All in all, the consumer wins! Online lending has made the process quick and easy for the consumer, and brick and mortar companies are allowing for a good mix of face to face and easy access online for their borrowers as well. As always, it is up to the consumer on their own preference of how this transaction works out. What would you prefer?
A Note From The Author:The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.
Article by Breana Washington