How Does a Bank Loan Differ from a Non-Bank Loan?
A non-bank loan and bank loan have several similarities. The difference sets in during the application stage. Banks have several responsibilities to a range of clients. They service deposits and savings accounts. Plus, they issue loans. Banks finance loans through wholesalers and liquid assets. Non-bank lenders fund loan products differently.
Non-bank lenders fund loans through investors. Then, they collect the repayments on their behalf. Like banks, non-banks act as middlemen. Since non-banks such as Mortgage House do not collect deposits or service savings accounts, a different set of regulations apply. Mortgage House offers home loans to well-qualified homebuyers. We can compete with the terms offered by banks. In addition, we work with homebuyers who do not qualify for conventional loans.
For example, we provide family pledge loans to first-time homebuyers. This mortgage increases their borrowing power and capacity. Plus, it turns them into homeowners sooner.
Non-bank loans have less stringent requirements. If a homebuyer cannot provide a 20% deposit, Mortgage House offers low deposit mortgages. We know that small business owners, independent contractors, and freelancers cannot provide full financial documentation. Therefore, we make the low doc home loan available to them.
Our team also provides an array of online tools such as the home loan calculator with no strings attached.
Difference Between Non-Bank and Bank Loan Conclusion
In essence, a loan from a bank and a non-bank lender remain similar. A bank loan differs from a non-bank loan in the application stage. To obtain more information, contact our Mortgage House loan specialists. They can answer your questions today.