What’s the difference between a retail lender and an online lender?

You’ve got a lot of options when it comes to a mortgage lender. Let’s check out the differences between retail lenders and online lenders.

What are the types of lenders?

As the mortgage industry continues to evolve, the customer’s lending experience has changed too. There are two main types of lenders – online and retail. Online lenders provide loans using technology and apps throughout the entire process, while retail lenders use loan officers to work directly with the borrower on their loan.

Who do they lend to?

Both online and retail lenders provide mortgage loans to individuals looking to purchase or refinance a house. With the ongoing changes to available services and technology, individuals looking to get a new loan can choose between these two main types of lenders.

What are the benefits of online lenders?

Online lenders offer a quick, efficient experience because the entire process is done online. All the borrower’s documents are also provided through an online portal, which can make the loan process simpler and easier. With so many online lenders available, another potential benefit is the ability to shop and compare rates online.

What are the benefits of retail lenders?

Retail lenders have dedicated loan officers who work directly with borrowers. Loan officers provide expertise and guidance for each borrower based on their individual situation. Retail lenders also have local connections within their communities, which gives them a wide network of resources throughout the loan process. Because loan officers work with a variety of customers and varying loan options, they also have experience managing complicated loan situations.

What are the challenges of online lenders?

Because online lenders rely on technology to move the loan process forward, they may not offer dedicated loan officers. This can make it harder to speak with a loan expert if you have questions. In addition, online lenders may have less experience with complicated loan situations.

What are the challenges of retail lenders?

Because retail lenders function through loan officers, the loan process isn’t as automated as an online lender would be. Some systems and processes can be more time-consuming since the loan officer is working alongside the borrower throughout the process.

Now it’s clear that there are pros and cons to each. What do you decide? At Blue Spot Home Loans, we recognize the benefits and mitigate the challenges associated with both online and retail lending platforms. Our unique structure blends both approaches, allowing you to get a mortgage that’s backed by technology, but with a personal touch. We give you the tools to take control of the process, and we’re here to support you along the way.

Are you in the market for a loan? Call or Contact us Blue Spot today to talk to us about our wide portfolio of loan options.