Benefits of the Primary Mortgage Market There are some benefits available to borrowers who transact in the primary mortgage market, which can include: Low Closing Costs Primary lenders are typically locally-owned banks, which means that they do the credit analysis and underwriting process. Underwriters review a borrower's financial information and credit history to decide whether to extend credit or deny the loan. Also, local banks prepare all of the paperwork and documentation in-house instead of going through a centralized unit out of state as is the process for some large banks. The result can be lower fees with a local bank since they have less overhead versus a larger bank. Also, if a mortgage broker got involved in finding the bank, a fee will be assessed as well. In short, opting for a locally-run bank for a primary mortgage can help reduce closing costs. Small Down Payments Typically, the down payment for a mortgage is 20% of the purchase price of the home. However, a borrower can put down less money, and many primary lenders offer a 10 percent downpayment.