Online loans – a new rising star
There is no doubt, online loans are the new way of solving any problem in your financial life! If you find yourself in need of a loan or you simply have the desire to purchase something that your income alone can’t cover, it’s time to forget about the banks and credit unions fuss. Borrowing online has a number of major benefits, from quick approval – as the online lender can tell you more or less instantly if you’re either approved or not – to lower interest rates (if any) and easier approval because they always use alternative information to evaluate your credit worthiness. You can find information about all types of loans, but make sure you search for it in the right places. For example, expert online loan lenders like Credit Cube provide a review of all types of loans and they make sure you choose a loan that satisfies your requests. For now, let’s see what the differences between the main types of lenders are!
Mortgage bankers and brokers
A mortgage banker is the one that works for a bank or similar institution and they actually provide you the money for the loan. On the other hand, a mortgage broker is the one that searches and buys the most attractive rates/terms available according to the borrower’s needs. In addition to that, they charge processing or origination fees.
Direct lenders do exactly what their name says: loan the money directly to the borrower. Unlike the other two categories, when you opt for this type of services, you skip the extra fees and save more time by communicating directly with the lender. This category includes the above-mentioned online loans, which are currently the best choice for any person who’s looking for a loan. Online loans became so popular and demanded, that direct lenders started making offers based on certain needs of the customers. This is the reason why before applying for an online loan, you need to make a research in order to find out which type of loan better suits your needs and which is the most reliable lender. May it be an installment loan, a Credit Card loan or an Auto Title loan, find as much information as possible, ask questions and decide which is the one for you.
Secondary Market Lenders
These type of lenders are rare and they simply assist the national mortgage market by allowing money to move easily from state-to-state. Also, they have strict guidelines and regulations that help the general public. The most popular secondary lenders are Federal National Mortgage Association (FNMA), Government National Mortgage Association (GNMA) and Federal Home Loan Mortgage Corporation.
Direct lenders – always the best solution
After all, the final decision belongs to you, but we find it hard to believe that you don’t want quick and easy loans, with the ability to pay them back according to a schedule designed by you. Direct lenders are able to find solutions for any type of situation even if you have a bad credit score. They don’t have hidden fees or charges and they communicate to you throughout the entire process. Apart from that, each lender has special programs and offers designed for your needs, because they care. So, which one do you choose?