I've seen it done both ways. In the Church or the Funeral home. Either is good. The same people attend. The same Pastor preaches over it.
Personally, I have come to favor only a graveside service. You can still have the pall bearers carry the casket from the hearse to the grave site. The Pastor still preaches. Family can still participate by first throwing some dirt and their flowers on the casket.
And afterwards the family can invite any to come to their home or some place where they have prepared a meal for all to enjoy, reminisce, show pictures, and fellowship. Or they can have it at the grave site also. An outdoor meal, weather permitting. Just like a family reunion. Which is really the flip side of a funeral.
Lees