The post-recession real estate industry has seen astounding changes and shifting trends that have altered the landscape entirely. What was once thought to be an impenetrable system for many is now a wide open world. Yes, it is possible to get a mortgage with a credit score of 615. Yes, it is possible to own a house and never rent a day. How is this all accomplished? It happens with the direct lending marketplace.
What are direct lenders, really?
Direct lenders work outside the traditional bank system. They avoid the trappings of bank brokers by just getting rid of the brokers entirely. In a bank system, a broker is basically a representation of the lending house. They can’t really do anything without the authority of the lender, which is why these strict regulatory systems are established.
Direct lenders are doing the actual lending. They avoid brokerage fees because they do not have them. They avoid cumbersome restrictions because they can do the risk aversion directly. Direct lenders are alternative sources for buyers looking to avoid the trials of the big banks.
Are they better than big banks?
The answer is a little complicated. The reality is yes and no. They can be a lot better for people who have bad credit, limited start-up funds, or who work and live in a small community. Yet, they can be inferior to individuals who have $100,000 already or are looking to buy many properties outside the immediate region. It is not as simple as “good or bad.”
Direct lending has helped address some serious issues with big banking, but it hasn’t solved everything. Furthermore, it can still be a little confusing for people. This is why Dustin Dimisa has developed a system, essentially a social platform, for people to find the right lenders who fit their needs. Interested buyers can get info about Dustin Dimisa on his Twitter page or by visiting the official website of Customer Connect. The platform does what it states- connects customers to the right lenders for the right buying strategy. It will get more people into home ownership while often avoiding the scale of big banks entirely.