When you’re in the process of buying a home, you’re going to be faced with numerous decisions. One important decision is whether to get your mortgage loan from a local company or to use a national company. To help you decide, this two-part series contains valuable information for both options. This article explores some advantages and disadvantages of local lenders. Part 2 will explore some advantages and disadvantages of national, so be sure to follow up.
Advantages of a Local Mortgage Lender
- They Understand Your Market – Local lenders are your community members. They’re your neighbors and they understand the market in your specific area. They also have a personal connection with professionals in your area that are part of the home buying process and can help you get in touch with the right people. This includes real estate agents, appraisers, title companies, and inspectors. Their knowledge of the local community is part of what makes them a valuable asset for you during this process.
- They Offer a Personal Touch – With a local lender, you get quality face-to-face time with the professional. You’ll also have easy access to your lender and much more open communication. Because they’re locationally close to you, their availability is naturally more accessible, easing potential anxieties and stress. You won’t have to worry about call centers or long wait times anytime you need to need help. Communication is extremely important during the home buying process, and with a local lender you can be sure you can reach your lender whenever you need to.
- Fewer Clients, Better Support – Most local lenders won’t have a slew of clients, meaning you’re not just a number in a queue. They’ll be able to give you the attention you need and all the support you will want during the entire process. They’ll also be able to better support you in the future with the ability to easily inform you of potential savings over the years.
- They are Motivated to Take Care of their Community – Local lenders have a big incentive to take care of their neighbors—their reputation. They want their friends and neighbors to spread the word about their hard work and ethical practices. The connections around them will push them to do the best they can every day for every client.
- They Help Close the Deal – Local lenders are appealing to real estate agents because when they see their name, they know they have a lender is reliable and honest about your financial situation. The listing agent knows the local lender will be more accessible and will provide better customer service.
Disadvantages of a Local Lender
- They’re not Everywhere – This can be a deterrent for people who are moving from other locations. For example, if you currently live in Florida and need to move to Idaho, a local lender may not be working on the same hours as you and reaching them can get difficult.
- They May Not Have the Loan You Want – Their loan selection may not be as extensive as a national lender, so your options could be limited.
Join us for Part 2 of this series to see a comparison with national lenders.