Decision Tools
Lead Generators
Lead Generators submit your information to their affiliates who then contact you and compete for your business either by calling or in some cases, actually making offers to you online.
Lead Generators
- Multiple mortgage providers can compete for your business.
- In some cases offers are made over the internet.
- Online rate quotes provided.
- Online rate quotes are Retail rates and are not customized for you.
- Unlikely to get the best rates or lowest closing costs.
- You will likely be flooded with numerous calls and e-mails.
FAQs: Direct Lenders
How do Direct Lenders work?
Direct Lenders offer their own mortgage products just like a retail bank, or they work with other lenders to whom they re-sell the mortgages they offer.
- You can search for rates on their site to get a sense of pricing. However, the rates presented are not customized for your profile and are Retail Rates.
- You can usually apply for a loan product directly online.
What do Direct Lenders offer?
Direct Lenders can offer wide range of products. These are either their own products, or they offer the products and Retail Rates of other lenders. You will usually find a greater selection than going directly to a retail bank.
What are the drawbacks to using a Direct Lender?
While you can get access to a wider range of products, Direct Lenders have some of the disadvantages of going directly to a Retail Bank.
- The rates you receive will be Retail.
- Fees and closing costs may be higher than using other channels.
- You are not guaranteed to qualify for the rates and products offered to you online.
