Need a Mortgage? You May Want to Visit Your Local Walmart

You can get much more than bread and milk at your go-to big-box store.

When you think of a Walmart shopping trip, you might imagine loading your cart with groceries, paper products, and maybe even some apparel or toiletries. But soon, you may be able to purchase something much more substantial at Walmart -- a home.

To be clear, Walmart is not getting into the construction business. But it is partnering up with Lenders One Cooperative, a retail lending subsidiary of Altisource, to offer mortgage products and related services to customers.

So far, Lenders One has three Walmart locations under lease but plans to expand its in-store presence substantially. Meanwhile, Walmart shoppers will have an opportunity to apply for not just regular mortgages at the big-box store, but also products like refinances and home equity loans or lines of credit.

A great opportunity all around

The goal for Lenders One in bringing its mortgage services to Walmart is to broaden its customer base and compete with larger, more well-known lenders. Founded in 2000, Lenders One Cooperative has a network of over 240 independent mortgage bankers, credit unions, banks, correspondent lenders, and suppliers of mortgage products and services.

Meanwhile, Walmart has long been a trusted name for consumers, so partnering up with Walmart is a strategic move for Lenders One. It's a good thing for home loan applicants, too, because they can enjoy the convenience of being able to apply for or inquire about borrowing options locally.

Should you rush to sign a mortgage at Walmart?

The fact that you can conceivably stock up on eggs and sign a mortgage all in the same shopping trip is unquestionably convenient. But to be clear, if you're in the market for a home loan, it's always a good idea to shop around with different mortgage lenders rather than accept the first offer available.

There are various factors that lenders consider when deciding what interest rate to offer applicants on a mortgage. These include your credit score, your existing level of debt relative to your income, and your current earnings. It may be the case that you gather offers from six different mortgage lenders, and one ends up being substantially more attractive than the rest, so definitely do your research before signing up for a home loan.

Another thing you'll want to keep in mind is that different lenders charge different closing costs to finalize a mortgage. One lender may offer a better deal on a mortgage rate, but charge such high fees to finalize your home loan that your rate-related savings are negated. While closing costs can be negotiable, lenders can choose whether they want to budge on theirs -- it depends on how badly they want your business.

You'll need to look at the big picture when signing a mortgage. You may end up getting a great offer at your local Walmart, but you should also do your research to be sure. Walmart is often known for having the lowest prices in town -- but we don't know if that will apply in the context of mortgage borrowing.